Sygnum launches a yield generating fixed deposit product on its Digital CHF (DCHF) stablecoin
Zurich: 16 March, 2021 – Sygnum Bank today announced the launch of a 3-month Digital CHF (DCHF) fixed term deposit product, which generates 0.75 percent yield per annum. This is the first time that a regulated bank is offering yield on its own issued stablecoin, providing a low-risk opportunity for yield generation in the digital asset space.
Sygnum’s Digital CHF (DCHF) fixed term deposit offers a digital asset alternative to holding traditional CHF, where investors are often charged with negative interest rates
DCHF is a Sygnum-issued stablecoin pegged 1:1 to the Swiss Franc which is covered by the esisuisse insurance scheme
Product is easily accessed through Sygnum’s banking platform, and extends the DCHF offering with the same financial toolset available with traditional currencies
A digital asset alternative to holding traditional CHF
Sygnum’s DCHF fixed term deposit is a yield generating digital asset product which provides an alternative to holding traditional CHF. Currently, CHF deposits often incur negative interest, eroding the value of investors’ existing capital. With Sygnum, investors can quickly and conveniently convert their CHF into DCHF and generate 0.75 percent yield per annum, with the peace of mind that these deposits are covered by the esisuisse insurance scheme.
DCHF is a Sygnum-issued stablecoin that is pegged 1:1 to the Swiss Franc. Also a key component of Sygnum’s tokenization solution, it facilitates on-chain settlement of asset token transactions – resulting in immediate settlement and eliminating the need for intermediaries. Sygnum has continued to develop its stablecoin across a variety of applications, including its bank-grade tokenization platform, e-commerce transactions and electronic promissory notes, and has now launched its DCHF fixed term deposit product to meet growing client demand for a yield-generating money market product denominated in CHF.
Once considered lacking, yield products in the digital asset space have proliferated in response to market demand. Investors can now generate yield on their digital assets in a variety of ways, enabling them to counter the effect of negative interest on fiat holdings. However, many of these products are complicated and risky, and with the DCHF fixed term deposit Sygnum fills the need for a low-risk yield option in a fully regulated environment.
Pascal Gähweiler, Sygnum Bank’s Head of Credit & Lending says “Sygnum’s DCHF fixed term deposit is an investment which is simple to understand and easy to access. We created this product for our clients who are looking to protect the value of their wealth while maintaining short to medium term liquidity.”
“This further extends our DCHF offering and provides clients with the same financial toolset available for traditional currencies. We will continue to develop innovative products and services across the various categories of digital assets,” adds Thomas Eichenberger, Sygnum Bank’s Head of Business Units.
To benefit from this product, Sygnum clients simply need to convert their existing CHF holdings into DCHF and subscribe to the DCHF fixed term deposit product. This can be done seamlessly through Sygnum’s integrated account, which enables clients to use their deposited CHF, EUR, SGD, and USD to securely buy, trade and hold an expanding range of digital assets including DCHF, Bitcoin, Ethereum and other leading protocol tokens, and a diverse range of asset tokens.
 Under the Swiss Banking Act of 2005, all deposits held in a Swiss bank will be covered under the esisuisse deposit insurance scheme for a maximum amount of CHF 100,000 (per client per bank).
Sygnum is the world’s first digital asset bank, and a digital asset specialist with global reach. With Sygnum Bank AG’s Swiss banking licence, as well as Sygnum Pte Ltd’s capital markets services (CMS) licence in Singapore, Sygnum empowers institutional and private qualified investors, corporates, banks, and other financial institutions to invest in the digital asset economy with complete trust. Sygnum operates an independently controlled, scalable, and future-proof regulated banking platform. Our interdisciplinary team of banking, investment, and Distributed Ledger Technology (DLT) experts is shaping the development of a trusted digital asset ecosystem. The company is founded on Swiss and Singapore heritage, and operates globally. To learn more about Sygnum, please visit www.sygnum.com.
For more information, or to arrange an interview, please contact the following:
T: +41 44 266 67 67
T: +41 58 508 21 01
Sygnum Bank AG
This document was prepared by Sygnum Bank AG. This document may contain forward looking statements and may be subject to change. The opinions expressed herein are those of Sygnum Bank AG, its affiliates, and partners at the time of writing. The document is for informational purposes only and contains general material. It is for use by the recipient only. It does not constitute any advice or recommendation, an offer or invitation by or on behalf of Sygnum Bank AG to purchase or sell assets or securities. It is not intended to be used as a general guide to investing, and should be used for informational purposes only. When making an investment decision, you should either conduct your own research and analysis or seek advice from an expert to make a calculated decision. The information and analyses contained in this document have been compiled from sources believed to be reliable. However, Sygnum Bank AG makes no representation as to its reliability or completeness and disclaims all liability for losses arising from the use of this information.