Lending

Who is eligible to obtain a credit line with Sygnum?

All private qualified and institutional Sygnum clients are eligible for a credit line using crypto assets as collateral.  

How do I apply for the credit line?  

If you are a Sygnum client, please contact your Relationship Manager or our team here.

Most client loan applications can be assessed in the same business day.

Which assets can be used as collateral?

We accept the following tokens as collateral: 

Solana and Polkadot tokens will be added soon to our platform.

Which fees does your Sygnum credit line have?  

The credit line has two associated fees: interest and commitment.   

Interest fee: Sygnum charges an interest fee on the current drawings only. For example, if you have a CHF 1 million credit line with us, and you use only CHF 800,000 of it, we only charge interest on the CHF 800,000 drawing.   

Commitment fee: This is the minimum fee you would need to pay every 12 months to keep the credit line open with us. For example, if your contract has a total limit of CHF 1 million and a commitment fee of 1 percent p.a., you would pay a minimum fee of CHF 10,000. If you use the line and the total interest charge is higher than CHF 10,000, the commitment fee is waived.  

How are credit line fees charged?

Fees are charged on the last day of each quarter (31 March, 30 June, 30 September and 31 December). Fees are charged directly to the client’s account for the credit line.   

What happens if my assets decrease in value and a margin call procedure is triggered?  

Sygnum has two procedures:   

In the case of a margin call, we contact a client and request additional collateral to restore the initial margin level.

At a liquidation level, Sygnum has the right, but not the obligation, to close any open positions and liquidate clients’ collateral to cover negative balances and meet collateral requirements.
Margin call thresholds vary according to the composition of a clients’ portfolio.

What happens to assets once clients pledge them as collateral?  

Assets will be locked and unable to be transferred out, but will remain secure in the client’s Sygnum custody account. If the assets gain in value and the client becomes “over-collateralised”, the assets exceeding the collateralisation level become available for further trading and transferring out. This is an automatic process and is updated in real-time according to market prices.   

Does Sygnum use my collateral for other business purposes?

Although obtaining ownership of the collateral (rehypothecation) is common, this is not a market practice Sygnum follows. Therefore, our clients do not face a counter-party risk when depositing their assets with Sygnum. Clients retain full ownership of all their assets, including those pledged as collateral, and have standard custody fees applied. 

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Local restrictions – Provision of cross-border services

Sygnum is a regulated bank supervised by the Swiss Financial Market Supervisory Authority (FINMA, Laupenstrasse 27, CH-3003 Bern). The products and services on this website are authorised for sale in Switzerland. Sygnum cannot promote its products and services in other countries where it is not authorised by the supervisory authority of that country to do so. Without prejudice to provision of services on the basis of reverse solicitation, Sygnum provides investment services in accordance with EU third-country regimes (where applicable). Sygnum is allowed to provide services only to per se professional clients and eligible  counterparties as defined under MiFID II.

If you are located outside Switzerland and click on “Continue” to visit this website, you confirm that you have read and understood the above and you are visiting this website on your own initiative without any active promotion or solicitation from Sygnum.

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The following content is available to professional and private qualified Swiss investors. Please confirm your details below to visit this page, or please see our other digital asset updates here.

Qualified investor - I am a natural person who has the knowledge required to comprehend the risks of the investments based on my individual education and professional experience or based on comparable experience in the financial sector and hold liquid assets of at least CHF 500’000 (excl. real estate and pension funds).

A US Person is defined as (a) an individual who is a citizen or resident of the United States for federal income tax purposes; (b) a corporation, partnership or other entity created or organised under the laws of or existing in the United States; (c) an estate or trust the income of which is subject to United States federal income taxes regardless of whether such income is effectively connected with a United States trade or business.

Disclaimer: This content 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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