Sygnum Allows Staked Solana as Loan Collateral for Liquidity and Passive Income

Sygnum announced today that it’s adding staked Solana to its portfolio of tokens eligible to use as loan collateral. This will allow institutional clients to access fiat liquidity and staking rewards at the same time.

The firm already accepts Solana and at least 20 other tokens for loan collateral, but this is its first staking option. Booming institutional demand caused Sygnum’s loan volumes to double in one year, encouraging the company to diversify.

Sygnum, a Swiss-Singaporean digital asset bank, began offering crypto staking nearly four years ago. The firm has since diversified its interests, securing a crypto brokerage license in 2023 and achieving unicorn status with a massive funding round earlier this year.

Today, Sygnum offers another staking service by letting staked Solana act as collateral for Lombard loans.

To be clear, Lombard loans are a specialized type of loan that bears no relation to Lombard Protocol, a crypto staking firm. These products are typically offered to high-net-worth individuals or institutional investors, and Sygnum is offering this Solana deal to the latter category.