Switzerland: Crypto Bank to Offer DeFi Tokens to Institutional Clients

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Crypto-bank Sygnum has launched institutional-level custody and trading services for decentralized finance (DeFi) tokens. This is a significant move for the Swiss-based bank and includes a yield farming solution.

Sygnum Launches DeFi Services 

Sygnum made the announcement today where it revealed that it would launch regulated banking services for several decentralized finance (DeFi) tokens. The crypto bank will offer several DeFi tokens like Aave (AAVE), Aragon (ANT), Curve (CRY), Maker (MKR), Synthetix (SNX), 1inch (1NCH), and Uniswap. 

Sygnum will also offer a custody and trading service for the USD Coin (USDC) stablecoin. As part of the first step towards integrating complete services, Sygnum clients will be able to invest directly in the tokens mentioned above. They will also access a full range of banking services, including institutional level custody, transfer, and trading services. 

Subsequently, Sygnum will offer a suite of yield farming products and services. Also, the bank plans to offer personalized solutions in direct partnership with famous DeFi applications. This initiative marks the first step in Sygnum’s aims towards creating a bridge between centralized and decentralized finance. 

Major Development for DeFi 

Sygnum’s decision to offer DeFi services is a huge one for the fast-growing sector and a major move towards attracting institutional investment. Several DeFi protocols have already begun to make products targeted at institutions. 

Aave, for example, is building a private pool for institutions. Stani Kulechov, CEO of Aave, recently explained that the service was at an advanced stage and could arrive on the mainnet. Sygnum would likely provide access to the pool for its institutional clients. 

Kulechov reacted to the announcement expressing the willingness to work with the crypto bank. 

“Sygnum’s institutional grade custodial solution makes it easier for clients to learn in the cryptocurrency ecosystem. We look forward to continuing our collaboration with the aim of creating a bridge between the traditional banking world and decentralized finance,” he said. 

Thomas Eichenberger, Head of Business Units at Sygnum Bank, said “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,” he concluded.

The total value locked in DeFi protocols has jumped from $1 billion a year ago to over $60 billion at the time of writing. This growth suggests that decentralized finance will play a significant role in future financial evolution. 

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