Sygnum revealed today that it is introducing staked Solana to its range of tokens accepted as loan collateral. By doing so, institutional clients can both access fiat liquidity and staking rewards simultaneously.

While Sygnum already accepts Solana and at least 20 other tokens as loan collateral, adding staked Solana as an option is a first for the firm. A surge in institutional demand led to a doubling of Sygnum's loan volumes over the past year, prompting the company to broaden its services.

Sygnum, a digital asset bank based in Switzerland and Singapore, started offering crypto staking nearly four years ago. It has expanded its offerings, obtaining a crypto brokerage license in 2023 and becoming a unicorn after a major funding round earlier this year.

Now, Sygnum is introducing staked Solana as collateral for Lombard loans, a specialized type of loan generally aimed at high-net-worth individuals or institutional investors.

In providing this staked Solana option, Sygnum brings benefits such as lower-cost loans where a significant portion of staking rewards offsets the usual fees. This differs from clients pledging regular Solana tokens, who incur higher costs and do not earn passive income.

Sygnum's Head of Credit & Lending, Benedikt Koedel, highlighted the advantages, saying, "By allowing staked Solana as collateral, we address a crucial client need to optimize yield while ensuring liquidity." The move is part of Sygnum's effort to meet the rising institutional demand for exposure to cryptocurrencies.

Staked Solana will contribute to enhancing Sygnum's loan collateral portfolio to cater to this growing demand. The bank emphasizes security by offering full segregation of client positions on-chain through its in-house custody service.

Sygnum will manage staking Solana through various tools to ensure security and flexibility, including its user interface, API integration, and client relationship managers.