Switzerland Bank to Offer DeFi Yield and Lending With Ethereum

Switzerland’s Sygnum Bank will allow investors to dive into the decentralised finance world by launching custody and trading for several DeFi tokens.

According to a recent blog post, the bank will offer trading services for up to seven leading tokens in the DeFi market: Aave, Synthetix, UNI (Uniswap), Aragon, Curve, Maker, and 1inch Network.

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 decentralised 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

Banks Rush to Explore DeFi

With a TLV (Total Lock Value) of US$60 billion, banks are rushing to explore the DeFi world as more institutional investors show interest in investing in it. In a further note, Sygnum outlined that the fast-paced growth of the DeFi ecosystem will “play an increasingly relevant role in shaping Future Finance”.

Besides custody and trading, the institution also launched banking services for USDC and intends to launch yield-generating products for its institutional clients. This bridges the institutional space with the decentralised one in a regulated manner.

DeFi Personal Banking Set to Take Off

As DeFi expands across international financial markets, investor Mark Cuban believes DeFi can revolutionise the way people do banking in the future. Cuban claims that while DeFi is hard for the average person to understand at first, once it becomes as easy to use as credit cards there will be a massive take-off in adoption.

Australia is not falling behind when it comes to DeFi as more Australian startups are emerging as international leaders in DeFi and tokenisation. Among some of these projects is Synthetix, a derivative liquidity protocol, and Ren Protocol, which provides inter-blockchain liquidity for dapps (decentralised applications).