Sygnum Bank, the first cryptobank to be licensed by FINMA, announced on April 30 that Ripple XRP tokens are now available through its banking services platform. Users can access deposit, exchange and credit services using the popular digital currency.
Based in Switzerland, the bank will now allow the third most capitalized digital token, behind Bitcoin (BTC) and Ethereum (ETH), for example
, to be used by clients looking to diversify their direct investments in digital tokens, along with other asset management products offered.
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Sygnum clients can use deposits in traditional currencies, such as Swiss Franc, Euro, Singapore Dollar and US Dollar, to buy, hold and trade XRP tokens supported by the Ripple protocol.
Increased liquidity in the banking portfolio
In addition, customers can transfer XRP tokens to their Sygnum deposit account or increase their liquidity in traditional fiduciary currencies with a Lombard loan granted against XRP.
Mathias Imbach, co-founder of Sygnum, praised the announcement and commented as follows:
„We were impressed by Ripple’s excellent performance globally, they now have over 300 financial institutions in their global payments network, RippleNet. The XRP-based solutions developed by the company address the weaknesses of the growing $700 billion global remittance market. The low cost of transfers makes it an ideal tool to facilitate payments in emerging economies.
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The bank also noted that the Ripple protocol provides low-cost, instantaneous cross-border transfers, rather than the traditional way of sending money abroad.
Sygnum clients‘ assets are held in separate, highly secure individual portfolios. They are available in a single click from each client’s online banking platform, and are accessible anywhere in the world.
Banks‘ interest in the Ripple protocol
This is not the first time a bank has incorporated the Ripple protocol into its operations. Cointelegraph reported on April 10 that Azimo, a digital money service, has partnered with Siam Commercial Bank of Thailand to launch an instant cross-border payment service through RippleNet.
MoneyGram said in February that it received funds from blockchain-based payments company Ripple Labs to continue to scale up the use of blockchain capabilities in its services.