Swiss digital asset bank Sygnum has partnered with cryptocurrency exchange Bybit to strengthen institutional safeguards in the crypto trading space. The agreement connects Bybit’s trading platform with Sygnum Protect, an off-exchange custody solution designed to give institutions full trading access without compromising asset security.
As per the official announcement, institutional clients can continue trading spot and derivatives on Bybit, while their assets remain off-balance sheet, held securely at Sygnum. Balances are updated in real time, and profit and loss are automatically settled every eight hours, offering both liquidity and operational efficiency.
The partnership comes amid the current increased apprehension around counterparty risk in digital asset markets. By holding assets at a regulated Swiss bank, institutions gain the benefit of bankruptcy-remote protection under Swiss law, backed by multiple layers of security and independent auditing.
Sygnum’s Growing Dominance
Sygnum Protect has grown quickly since its launch, already serving as the off-exchange custody provider for Binance and Deribit. With Bybit now integrated, the platform covers exchanges that account for more than half of global spot and derivatives volume, making it the largest bank-run custody network of its kind.
Sygnum’s Chief Product Officer, Dominic Lohberger, added, “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. We are delighted to welcome Bybit to our growing network of integrated exchanges.”
Looking ahead, Sygnum aims to introduce automated collateral transfers between supported exchanges, helping traders deploy capital more efficiently while keeping risk in check.
Also Read: Bybit slashes fees on stock CFDs and indices in TradFi power play
