Sygnum Bank has expanded its off-exchange custody platform, Sygnum Protect, to include Deribit. This step allows institutional traders to access Deribit’s deep liquidity while keeping assets secure in Sygnum’s custody. The collaboration addresses the rising need for secure asset storage in the crypto sector.
Sygnum launched Sygnum Protect in early 2024. It was the first bank to offer off-exchange custody services for institutional traders. The platform separates custody and trading, reducing counterparty risks.
Off-exchange crypto custody:
The recent integration with Deribit leverages Fireblocks’ Off Exchange solution. This technology lets traders mirror assets held in Sygnum’s custody to Deribit without transferring ownership.
The off-exchange solution ensures that traders maintain control over their assets during trading. It enables instant spot, margin, and derivatives trades while locking assets in segregated wallets. This setup enhances security against cyber-attacks and exchange defaults. Institutional traders benefit from automated collateral management and on-chain settlement.
Recent cyber-attacks have increased awareness of counterparty risks in the crypto market. Many institutional investors seek secure custody solutions to protect their assets. Sygnum Protect’s regulated custody offers a robust safeguard. Assets remain off-balance sheet and bankruptcy-remote, providing additional security layers.
Secure crypto trading
Deribit is a leading crypto derivatives exchange that facilitates a significant portion of global crypto options trading. Its collaboration with Sygnum adds an extra layer of protection for institutional clients. Fireblocks’ infrastructure supports over 2,000 organizations and secures over $7 trillion in digital asset transactions.
The partnership highlights the growing importance of secure custody in the crypto industry. Traders gain access to Deribit’s liquidity without compromising security. The combined solution addresses the need for both high-performance trading and asset protection.
Sygnum Bank operates in multiple global financial hubs, including Switzerland, Singapore, Abu Dhabi, Luxembourg, and Liechtenstein. Its regulated custody services provide institutional clients peace of mind in an evolving digital asset landscape. Deribit’s advanced trading infrastructure and Fireblocks’ security solutions further strengthen the ecosystem.
