Sygnum Launches Bitcoin-Backed Lending Platform with Multi-Signature Wallet
- Sygnum and Debifi introduce Bitcoin BTC -0.71% -backed lending for institutions.
- Enhanced borrower control with multi-signature wallet setup.
- Aims to increase institutional trust and on-chain liquidity growth.
Swiss bank Sygnum, in partnership with Debifi, plans to launch MultiSYG, a Bitcoin-backed lending platform utilizing a multi-signature wallet in the first half of 2026 for institutional clients.
This platform targets institutions seeking secure lending solutions, following the failures of centralized lenders like BlockFi. MultiSYG could set a new standard in institutional digital asset lending.
Swiss bank Sygnum partners with crypto lender Debifi to launch MultiSYG, a Bitcoin-backed lending platform. The initiative aims to combine institutional-grade services with enhanced borrower control, utilizing a five-party multi-signature wallet.
MultiSYG seeks to prevent the rehypothecation failures seen in previous platforms. Sygnum, with regulatory licenses in Switzerland and Singapore, guarantees a robust legal structure. Debifi contributes its lending expertise, enriching the offering with bank solutions.
This service targets institutional and high-net-worth clients seeking bank-grade terms while maintaining cryptographic proof of their Bitcoin. “Borrowers can benefit from bank-grade terms in pricing, drawdown flexibility, and loan duration, while keeping cryptographic proof of their holdings and partial control of their BTC,” said Pascal Eberle, Lead for Bitcoin@Sygnum and MultiSYG initiative at Sygnum Bank.
Financial implications include a reduction in custodial risks and an alternative to centralized lending failures. This could drive further liquidity into Bitcoin lending, fostering a safer financial environment for stakeholders.
The potential rise of non-custodial lending services marks a significant trend. Multi-signature models, like MultiSYG, could set standards in digital asset safety, changing institutional perspectives on crypto finance investments.
Insights suggest increased institutional engagement could lead to greater liquidity and reliability within the crypto space. Adoption may influence traditional finance markets and regulatory bodies as new models harmonize safety and crypto innovation.
