Sygnum launches first phase of institutional-grade access to decentralised finance
Zurich, 15 June 2021 – Sygnum Bank announces today that it has launched regulated banking services for leading decentralised finance (DeFi) tokens, Aave, Aragon, Curve, Maker, Synthetix, Uniswap and 1inch Network. Sygnum Bank also adds banking services for the stablecoin, USDC. This significant expansion of Sygnum’s token offering marks the first milestone in Sygnum’s ambition to bridge centralised and decentralised finance (DeFi).
Total Value Locked (TVL) in DeFi applications has surged from USD 1 billion one year ago to now USD 60 billion – clear indication that DeFi will play an increasingly relevant role in shaping Future Finance.
Launch of custody and trading services for DeFi tokens is only the first step and will be followed by the launch of a suite of yield-generating products across Sygnum’s banking and asset management offering.
In parallel, Sygnum is collaborating with leading DeFi protocols to develop an innovative range of custom DeFi solutions targeted towards institutional and private qualified clients.
Sygnum to roll out portfolio of DeFi tokens
DeFi is the umbrella term for a growing number of decentralised applications which operate on public blockchains without the need for intermediaries. It aims to deliver new levels of efficiency and service innovation across a range of traditional and new financial use-cases, and already has USD 60 billion Total Value Locked (TVL) within its ecosystem and is set to grow further. In addition, the scalability and value of these DeFi applications will be significantly boosted by the ongoing Ethereum 2.0 upgrade, the public blockchain hosting the vast majority of DeFi applications, and further adoption of layer 2 scaling solutions.
Sygnum Bank now offers institutional-grade custody and regulated trading for a portfolio of leading DeFi tokens, all of which have seen strong market traction in the past year, including:
Aave(AAVE) – liquidity protocol for earning interest on deposits and borrowing assets
Aragon (ANT) – suite of applications and services that enable new forms of governance for global organizations
Curve (CRV) – decentralised exchange with a focus on stablecoins
Maker (MKR) – lending platform enabling over-collateralised loans to manage DAI, a stablecoin pegged to the US dollar
Synthetix (SNX) – derivatives liquidity protocol allowing users to gain exposure to a vast range of assets on the Ethereum blockchain
Uniswap (UNI) – decentralised exchange enabling trading of a broad range of ERC-20 tokens
1inchNetwork (1INCH) – distributed network for decentralised protocols on Ethereum, Binance Smart Chain and Polygon
In addition, Sygnum will provide custody and trading for USD Coin, a leading stablecoin used in the DeFi space.
In the first phase, Sygnum clients can invest directly in these tokens and access a full suite of banking services including institutional-grade custody, transfer and trading services. In later phases, Sygnum will offer a suite of DeFi yield-generating products and services across its banking as well as asset management offering, and develop custom solutions for its clients with selected DeFi partners.
Thomas Eichenberger, Head of Business Units at Sygnum Bank, says “The innovations in the DeFi space have the potential to transform many of the existing traditional use cases in the financial industry. They also offer opportunities to build and create new, cutting-edge digital asset products and services offering very attractive return profiles for our clients, especially in a continued low interest environment.”
Collaboration with leading DeFi protocols to develop regulated DeFi products and services
As a pioneer in bringing innovative digital asset products to the regulated space, Sygnum is collaborating with leading DeFi protocols to bring a range of DeFi products and services to clients. These will be integrated seamlessly with major national currencies, cryptocurrencies, a digital CHF and asset tokens in one account, making the DeFi universe bankable, convenient and trusted.
Stani Kulechov, CEO of Aave: "Sygnum's institutional-grade custody solution makes it easier for clients to onboard to the digital asset ecosystem. We look forward to continued collaboration with the aim of bridging the traditional banking world with decentralised finance."
Michael Egorov, CEO of Curve: “I am extremely excited about Sygnum's recognition of Curve Finance. By this, Sygnum is pioneering a bridge between traditional and decentralised finance, and I am sure that there will be more such bridges in the future - the future where DeFi powers a new financial system: modern, safe and efficient.”
Sergej Kunz, Co-Founder of 1inch Network: “As Sygnum is a genuine trendsetter of the modern banking world, we believe this partnership will bring great value for both counterparts. For its private qualified and institutional clients, Sygnum becomes a convenient gateway to the enormous DeFi market with lots of new opportunities.”
 DeFi Pulse
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.