Sygnum Bank Unleashes Staked SOL as Collateral for Multi-Currency Loans!

Institutional Demand Skyrockets, Doubling Crypto Lending Volume

Hang onto your hats, crypto fans! Sygnum Bank just dropped a bombshell: they're now letting clients use staked SOL as collateral for multi-currency loans. That's right, the Swiss digital crypto-friendly bank is pushing the envelope, adding staked Solana (SOL) to its arsenal of tokens you can use to secure Lombard loans. This means you can tap into fiat liquidity while still raking in those sweet staking rewards!

In a Thursday blog post that set the crypto world buzzing, Sygnum announced this game-changer applies to loans in Swiss francs, euros, Singapore dollars, and U.S. dollars. Imagine this: you can unlock liquidity from your staked Solana while still earning those staking rewards. It's like having your cake and eating it too, creating what the bank calls "dual-income potential from a single crypto asset."

But wait, there's more! Sygnum also revealed that Lombard loans using staked SOL as collateral are "low-cost" because the staking rewards cover most of the fees. Talk about a win-win situation!

This move comes hot on the heels of Sygnum's lending business exploding, with loan volume doubling over the past year. The addition of staked Solana expands Sygnum's already impressive Lombard loan collateral pool, which includes heavyweights like Bitcoin (BTC), Ethereum (ETH), unstaked SOL, Polkadot (POL), Ripple's XRP (XRP), and other altcoins.

Benedikt Koedel, the head honcho of credit & lending at Sygnum Bank, spilled the beans on why they're doing this. He said it's all about meeting a "key client need to optimize yield while maintaining liquidity." In other words, they're giving you the tools to make your crypto work harder for you!

And get this: a Sygnum survey from November 2024 of over 400 high-net-worth investors showed a growing confidence in crypto's long-term potential. They're all about portfolio diversification and macroeconomic hedging, driven by the promise of higher returns and a broader "megatrend" fueled by the sector's strong interest.