Sygnum allows staked Solana to be used as collateral for loans to obtain liquidity and passive income

ChainCatcher news, according to Beincrypto, digital asset bank Sygnum allows staked Solana (SOL) to be used as a loan collateral option, enabling institutional clients to retain staking rewards while obtaining liquidity.

Sygnum stated that staking SOL loans can reduce funding costs compared to regular SOL collateral, with a portion of staking rewards directly offsetting interest expenses. Sygnum employs an independent on-chain custody solution, completing staking operations through API or client manager channels.

Last August, the bank issued a $50 million Bitcoin-backed loan. The current annualized staking yield for SOL is approximately 5.7%. This is the first time Sygnum has accepted staked assets as collateral, reflecting the growing demand from institutions for liquidity management of crypto assets.