Sygnum Bank Expands Off Exchange Custody Platform to Include Deribit

Switzerland-based Sygnum Bank announced on Wednesday it has expanded its off-exchange custody platform, Sygnum Protect, to incorporate Deribit, a crypto derivatives exchange.

In a press release shared with CryptoNews, Sygnum said this integration will allow institutional traders to store their assets with a regulated bank while accessing Deribit’s liquidity.

Launched in early 2024, Sygnum Protect is an off-exchange custody service for institutional traders. Using Fireblocks’ off-exchange technology this allows traders to mirror assets held in Sygnum’s custody onto Deribit, giving them to access Deribit’s trading tools.

“Counterparty risk awareness in crypto comes in cycles, and the recent major cyber-attack has triggered one of the largest waves of exchange derisking since FTX,” said Dominic Lohberger, Sygnum’s chief product officer.

“This is yet another reminder that separating crypto custody from exchange trading is essential for security. Sygnum Protect is an essential building block for strengthening the resilience of the crypto industry,” adds Lohberger.

Institutional crypto traders face challenges due to trading platforms acting as both exchanges and custodians, creating security vulnerabilities.

“We are very pleased to offer additional security and transparency capabilities to our institutional clients looking to trade crypto derivatives through Sygnum Protect,” said Deribit’s CEO, Luuk Strijers.

“This integration provides the capabilities and security assurances they require to trade any of Deribit’s leading products comfortably.”

Fireblocks’ off-exchange tech allows the firms to programmatically lock assets in their own wallets while mirroring collateral to exchanges.

This setup means that traders maintain custody of their assets at all times, mitigating the risk of losing funds due to exchange insolvency or security breaches.

“This integration with Sygnum Protect and Deribit demonstrates the power of Fireblocks Off-Exchange,” said Michael Shaulov, CEO of Fireblocks.

“Exchanges and custodians can now leverage our standardized integration without requiring custom development—accelerating institutional adoption so assets can be securely held via regulated bank custody.”

Deribit Plans Hong Kong Expansion

In February, Deribit is also setting its sights on expanding into Hong Kong, as the city intensifies efforts to become a leading hub for virtual assets.

The Dubai-based firm said it is drawn to Hong Kong’s reputation as an international financial center and the growing interest in cryptocurrencies among family offices and asset managers.

Deribit’s expansion plans come as Hong Kong’s Securities and Futures Commission (SFC) unveiled a comprehensive roadmap to develop the city’s virtual asset ecosystem.

A key component of the plan involves exploring the introduction of virtual asset derivatives tailored for professional investors with portfolios exceeding HK$8 million (approximately US$1 million).

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