TLDR
- Swiss Bank Sygnum has partnered with Bybit to enhance institutional crypto asset security.
- The partnership focuses on off-exchange custody services to improve capital efficiency and transparency.
- Sygnum will mirror client balances on Bybit and settle profits or losses every eight hours.
- Sygnum Protect remains the largest bank-operated off-exchange custody platform in the market.
- Bybit expands its network of custody partners to include Sygnum, Fireblocks, Copper, and Cactus.
Swiss Bank Sygnum has teamed up with Bybit, the second-largest cryptocurrency exchange, to improve asset security for institutional clients. This partnership focuses on strengthening the Sygnum Protect platform, offering secure off-exchange custody services. It aims to enhance capital efficiency and operational transparency for institutional crypto investors.
Sygnum and Bybit Streamline Crypto Trading for Institutions
Through this partnership, institutional Bybit clients can now store their assets in an off-balance sheet at Sygnum. This new system allows clients to trade spot and derivatives without transferring funds between the bank and exchange. Both partners emphasize the ease of asset management and improved efficiency for clients.
Sygnum’s platform mirrors the client’s balances on Bybit. Every eight hours, the platform settles users’ profits and losses. This arrangement ensures high capital efficiency while maintaining full transparency.
The partners claim that the new system enhances institutional investors’ overall operational experience. The off-exchange custody platform reinforces Sygnum’s position as a market leader in the crypto custody space. In addition, it aligns with competitors like Amina Bank’s strategy of providing seamless crypto trading services.
Sygnum Protect’s Role in the Partnership
Sygnum Protect is already the largest bank-operated off-exchange custody platform. It serves a growing number of exchanges that account for over 50% of global spot and derivatives volumes. The platform offers advanced security measures to safeguard assets, including robust software and hardware controls.
Furthermore, the platform complies with strict governance mechanisms and undergoes independent audits to ensure reliability. Sygnum’s legal framework benefits from Swiss banking laws, offering clients enhanced protection during periods of market uncertainty. This is an added advantage for institutional clients looking for a secure way to store crypto assets.
Bybit’s partnership with Sygnum is a significant step towards expanding its custody offerings. The exchange has already partnered with other top-tier providers, such as Fireblocks, Copper, and Cactus. This growing network of custody providers enhances Bybit’s ability to offer diverse solutions for clients seeking asset protection.
Expanding Custody Network for Greater Flexibility
In addition to Sygnum, Bybit is continuously expanding its network of custody partners. The exchange is committed to offering clients the best custody solutions available in the market. This flexibility ensures that institutional clients have various options for securely managing their assets.
Yoyee Wang, Head of Bybit’s Business-to-Business Unit, highlighted the importance of this partnership.
“Our collaboration with Sygnum Bank ensures that clients have access to both Bybit’s top-tier products and the highest standards of Swiss banking security,” he said.
Dominic Lohberger, Sygnum’s Chief Product Officer, also emphasized the two companies’ shared vision. He stated,
“Together, we are creating a secure and transparent foundation for institutional clients to trade with confidence.”
