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Sygnum expands its DeFi offering

Sygnum expands its DeFi token offering

Insights Industry Sygnum

In June this year, Sygnum Bank launched regulated banking services for leading decentralised finance (DeFi) tokens, Aave, Aragon, Curve, Maker, Synthetix, Uniswap, 1inch Network, as well as the stablecoin, USDC. Now, Sygnum is further expanding its DeFi offering with four new tokens – Bancor, Chainlink, Compound and Polygon.

The launch of custody and trading services for DeFi tokens is the first step in Sygnum’s ambition to bridge centralised and decentralised finance. As a next step, Sygnum will offer a suite of DeFi yield-generating products and services across its banking as well as asset management offering, and in a later phase, custom solutions for its clients with selected DeFi partners.

The fast-growing DeFi ecosystem currently has nearly USD 100 billion of Total Value Locked (TVL) in – having grown more than 30 percent in the past two months. With this expansion, Sygnum clients now have wider access to DeFi investment opportunities, including infrastructure protocols such as Chainlink and Polygon, which enable the development of more advanced and scalable DeFi use cases.

Here, we provide an overview of the four new tokens that Sygnum is launching.

Polygon (MATIC)

Polygon is a protocol for building and connecting Ethereum-compatible blockchain networks. It has a market capitalisation of USD 9 billion. Its modular, flexible framework allows developers to build and connect layer-2 infrastructures that help blockchains to scale. The Polygon token (MATIC) is used to pay for transaction fees on the network, governance, and for staking to secure the network.

Dean Thomas, Head of Institutional Capital at Polygon: “We are proud to be partnering with Sygnum’s institutional-grade custody solution to help bring broader institutional adoption and exposure to both our MATIC token and our broader Polygon ecosystem.”

Bancor (BNT)

Bancor is a decentralised liquidity protocol with a market capitalisation of almost USD 1 billion. It is made up of a series of smart contracts designed to pool liquidity and perform on-chain conversion of tokens with no centralised counterparty. Users can deposit their tokens on Bancor in exchange for trading fees and liquidity mining rewards. The Bancor token (BNT) is used as the common price token to fulfil trades.

Nate Hindman, Head of Growth at Bancor Protocol: “We are excited to see Sygnum offer its clients greater access to DeFi protocols and support new innovations emerging in digital asset technology. We look forward to working with Sygnum to usher in novel interactions between institutional users and protocols like Bancor, and to create safe and simple ways for regulated players to plug into yield generating DeFi products.”

Chainlink (LINK)

Chainlink is a decentralised oracle network with a market capitalisation of USD 12 billion. It serves as a middleware between smart contracts and external data sources, enabling developers to build more robust and diverse blockchain applications using real-world inputs and outputs. The Chainlink token (LINK) is used to compensate node operators for the retrieval of data.

Compound (COMP)

Compound is an algorithmic, autonomous lending protocol with a market capitalisation of USD 2 billion. Interest rates are determined algorithmically based on the proportion of assets lent out, and users can borrow or lend from a pool of assets in a permissionless way. The compound token (COMP) is distributed to borrowers and lenders and the protocol is governed on-chain by COMP holders.

Disclaimer This document is purely for educational purposes and has been issued by Sygnum Group. It is not intended for distribution, publication, or use in any jurisdiction where such distribution, publication, or use would be unlawful, nor is it aimed at any person or entity to whom it would be unlawful to address such a marketing communication. It does not constitute an offer or a recommendation to subscribe, purchase, sell or hold any security or financial instrument. It contains the opinions of Sygnum Group, as at the date of issue. These opinions and the information contained herein do not take into account an individual‘s specific circumstances, objectives, or needs. No representation is made that any investment or strategy is suitable or appropriate to individual circumstances or that any investment or strategy constitutes personalized investment advice to any investor. Therefore, you must verify the above and all other information provided in the document or otherwise review it with your external advisors. Some investment products and services, including custody, may be subject to legal restrictions or may not be available worldwide on an unrestricted basis. The information and analysis contained herein are based on sources considered as reliable. Sygnum Group uses its best efforts to ensure the timeliness, accuracy, and comprehensiveness of the information contained in this document. Nevertheless, all information indicated herein may change without notice.

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