Bank for digital assets in Switzerland For a portfolio of decentralized finance (DeFi) tokens, Sygnum is delivering institutional-grade custody and trading services. DeFi refers to the crypto industry that aims to replicate many of the same services as traditional banking but without the need for middlemen.
The bank announced that regulated banking services will be available for Aave (AAVE), Aragon (ANT), Curve (CRV), Maker (MKR), Synthetix (SNX), Uniswap (UNI), and 1inch (1INCH). Sygnum will also handle the stablecoin USD Coin’s custody and trading (USDC).
Clients of the bank will be able to invest directly in the DeFi token portfolio at first, but Sygnum also announced that it will introduce DeFi yield-generating products and services, as well as undisclosed “custom solutions” with DeFi partners. According to Sygnum, its DeFi products and services would be “seamlessly integrated” with national currencies, cryptocurrencies, a digital Swiss franc, and asset tokens in a single account.
In a news release accompanying the announcement, Thomas Eichenberger, Head of Business Units at Sygnum Bank, remarked, “The advancements in the DeFi domain have the potential to revolutionize many of the existing traditional use cases in the financial industry.” In the current low-interest climate, Eichenberger praised the “extremely attractive return profiles” given by digital asset offerings.
“Sygnum is laying the groundwork for a bridge between traditional and decentralized finance,” said Curve CEO Michael Egorov, who predicted that more such bridges would be built in the future.