Sygnum, which has also added banking services for the USDC stablecoin, plans to expand with a suite of yield-generating products for its clients, which include banks, hedge funds, asset managers and family offices.
“This is the next step on our journey to enable a variety of yield-generating products in the digital-asset space,” Thomas Eichenberger, Sygnum Bank’s head of business units, said in a recent interview. “These can either be based on the proof-of stake protocol, so staking itself, or also leveraging and decentralized lending to generate yield for our clients, which is a bit further out on the roadmap.”
Banks and institutions are currently figuring out how to interact with DeFi, a $60 billion market of decentralized lending and trading mainly on Ethereum. On the digital-asset custody side, Sygnum leverages Custodigit, which involves Swiss tech provider METACO, a provider of digital asset safekeeping to banks like BBVA, Standard Chartered and GazpromBank Switzerland.
“Sygnum’s institutional-grade custody solution makes it easier for clients to onboard to the digital asset ecosystem,” Aave CEO Stani Kulechov said in a statement. “We look forward to continued collaboration with the aim of bridging the traditional banking world with decentralized finance.”