|
Getting your Trinity Audio player ready...
|
- Sygnum Protect allows off-balance sheet trading on Bybit with real-time updates.
- Partnership reduces counterparty risk with Swiss-regulated custody protections.
- Network now spans over half of global spot and derivatives trading volume.
Stay ahead with real-time updates and insights—Join our Telegram channel!
Swiss digital asset bank Sygnum has teamed up with cryptocurrency exchange Bybit to bolster institutional safeguards in crypto trading. The partnership links Bybit’s trading platform with Sygnum Protect, an off-exchange custody solution, enabling institutions to trade seamlessly without compromising asset security.
Off-Balance Sheet Trading with Full Security
The collaboration allows institutional clients to continue trading spot and derivatives on Bybit while keeping their assets off-balance sheet at Sygnum. Asset balances update in real time, and profit and loss are automatically settled every eight hours, providing both liquidity and operational efficiency.
By holding assets at a regulated Swiss bank, institutions benefit from bankruptcy-remote protection under Swiss law, enhanced by multiple security layers and independent audits. This comes at a time of heightened concern over counterparty risk in digital asset markets, making Sygnum Protect a vital tool for risk-conscious investors.
Sygnum’s Expanding Custody Network
Since its launch, Sygnum Protect has grown rapidly, already serving as the off-exchange custody provider for Binance and Deribit. With Bybit’s integration, the network now spans exchanges responsible for more than half of global spot and derivatives trading volume, establishing Sygnum Protect as the largest bank-run custody network of its kind.
Dominic Lohberger, Sygnum’s Chief Product Officer, emphasized, “The rapid adoption of Sygnum Protect by institutional clients trading on Binance, Deribit, and now Bybit demonstrates the urgent market need for bank-grade, off-balance sheet custody solutions.”
Looking Ahead: Automated Collateral Transfers
Sygnum plans to introduce automated collateral transfers between supported exchanges. This feature will enable traders to deploy capital more efficiently while maintaining strict risk management, further strengthening the platform’s appeal to institutional crypto participants.
The Sygnum-Bybit partnership marks a significant step toward safer institutional crypto trading. By combining high-security custody solutions with seamless trading access, Sygnum Protect continues to lead the market in risk-managed digital asset solutions.
Stay ahead with real-time updates and insights—Join our Telegram channel!
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
