Zürich-based Sygnum Bank announced today the launch of banking services related to decentralized finance (DeFi) tokens.
The Swiss financial institution will support several DeFi tokens like Aave, Aragon, Uniswap, Maker, Curve, Synthetix, and 1inch Community. It will also provide banking services for USDC, which is a stablecoin. This is the first step for Sygnum to connect centralized and decentralized finance. The bank plans to expand further with a collection of yield-generating merchandise for its customers, which includes banks, asset managers, hedge funds, and household workplaces.
“This is the next step on our journey to enable a variety of yield-generating products in the digital-asset space. 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.”Thomas Eichenberger, Sygnum Bank’s head of business units
In the first phase, customers can invest in the tokens offered by Sygnum and will be given full access to several banking services, including trading, transfers, and institutional-grade custody.
In the following phases, Sygnum will offer various decentralized finance yield-generating products and services through its banking. Asset management offering and develop custom solutions are some of the incorporated resources for its customer with chosen DeFi partners.
“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.”Thomas Eichenberger, Sygnum Bank’s head of business units
What is DeFi?
DeFi is the short term for “decentralized finance”. DeFi is a bundle of financial services on public blockchains that use smart contracts. DeFi’ can help you with most of the things a bank does without requiring paperwork or third parties. Decentralized finance is global, peer-to-peer, and open to all. There is no form to fill out or account to open. DeFi offers very competitive returns compared to traditional financial markets and other crypto opportunities.