Sygnum Bank launches stablecoin-based fixed deposit product

Sygnum Bank is launching a fixed deposit product based on the digital Swiss franc (DCHF). The company says it is the first yield-generating tokenised investment product.

Switzerland’s Sygnum Bank is launching a time deposit product based on its stablecoin

With this, the bank wants to offer its customers a yield-generating alternative in the current negative interest rate environment. The bank promises an annual return of 0.75 per cent with a term of three months and is thus, according to its own statements, the first Bitcoin Era financial institution to pay a return on its stablecoin. The DCHF is pegged one-to-one to the value of the Swiss franc. In doing so, the token acts as an important building block to enable on-chain settlements of digital assets without relying on intermediaries.

With the DCHF time deposit, Sygnum wants to offer its clients the opportunity to generate income through a risk-optimised product in a fully regulated environment. Clients can easily have their Swiss Francs converted into DCHF. Subscription to the product is seamless through Sygnum’s integrated account. This allows clients to buy, trade and hold deposits, digital assets and asset tokens.

Pascal Gähweiler, Head of Credit & Lending at Sygnum Bank, is particularly excited about the ease of use of the fixed deposit product:

Sygnum’s DCHF fixed deposit is an investment that is simple to understand and easy to access. We have created this product for those of our clients who want to protect the value of their assets while maintaining their short to medium term liquidity.
Pascal Gähweiler, Head of Credit & Lending Sygnum Bank

The bank previously came under the spotlight when Sygnum launched its own tokenisation platform, Desygnate. This is a primary market instrument that is complemented by the secondary market platform SygnEx. With the help of both platforms, investors have since been able to access a wide range of tokenised assets.