Swiss Bank Sygnum Now Accepts Staked SOL as Collateral for Fiat Loans

• On Thursday, Sygnum Bank announced that it now accepts staked Solana as collateral for fiat loans.
• The bank offers digital asset banking services, including custody, trading, and staking, and a platform for managing digital assets.

Sygnum Bank, a leading digital asset bank, has announced a major upgrade to its lending services. Clients can now use staked Solana (SOL) as collateral for Lombard loans. This means clients can now access fiat liquidity without having to give up the staking rewards they earn, a clear milestone in blending decentralized finance (DeFi) with traditional banking.

With this new feature, Sygnum’s clients can tap into the value of their staked SOL holdings to secure Lombard loans, unlocking immediate liquidity while their assets continue earning staking rewards.

According to the report, the addition of staked SOL complements Sygnum’s existing Lombard loan collateral portfolio, which already includes over 20 tokens such as Bitcoin (BTC), Ethereum (ETH), unstaked Solana, Polkadot (POL), and Ripple (XRP). This update comes at a time when Sygnum’s lending business is booming, with loan volumes doubling over the past 12 months as institutional demand for crypto-backed financing grows steadily.

Thomas Brunner, Head of Custody & Staking at Sygnum Bank, said: “Solana has established itself as a leading Layer 1 blockchain with significant adoption. Being the second-largest staking token by staked market capitalization, adding SOL staking capabilities was a natural evolution of our offering. Combined with our Lombard loan functionality, clients can now maximize the utility of their Solana holdings.”

Solana’s Challenges and Market Position

Still, the bank is clear that Solana has some catching up to do before it can truly compete with Ethereum, especially when it comes to winning over traditional financial institutions. In a recent blog post, Sygnum noted that while sentiment around Ethereum remains weak, much of the market’s attention is on Solana’s transaction volumes and its recent dominance in fee generation. However, they caution that Solana “does not seem focused on increasing token value” at this time.

Backing this up, data from Blockworks reveals that Solana’s 24-hour network revenue recently surpassed all other Layer 1 and Layer 2 chains combined, exceeding Ethereum’s revenue by three times, Bitcoin’s by eleven times, and Base’s by thirty-five times. For comparison, Ethereum generated $2.5 million in 24-hour revenue, Bitcoin brought in $647,900, and Base recorded roughly $273,700.

Despite this impressive network activity, Solana’s trading volume has dropped by 28.33%, now standing at $3.9 billion. Bitcoin’s price dipped by around 1.87%, trading at $102,283, and Solana followed with a 5.87% drop over the past 24 hours. However, over the past week, SOL has gained 10.58%, reaching a price of $170 and pushing its market capitalization to $88.46 billion. Also, its open interest has declined by 7.71%, now at $6.7 billion, and options volume has fallen significantly by 32.20%, settling at $1.06 million.

Meanwhile, crypto educator Cryptbusy points out that Solana is currently completing a massive Cup & Handle pattern, breaking out of a falling wedge with a strong 10% surge today. According to their analysis, this rally is just getting started, with price targets projected at $261, a 45% increase,  and potentially soaring as high as $386, which would be a 115% upside.

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