- Swiss digital asset bank Sygnum launches custody services for Deribit crypto derivatives exchange clients
- Partnership aims to reduce counterparty risks through third-party custody solutions
- Integration with Fireblocks enables seamless balance mirroring between custody and exchange
Swiss-regulated digital asset bank Sygnum has expanded its institutional custody services by partnering with Deribit, the world’s largest cryptocurrency derivatives exchange, through its Sygnum Protect offering.
The collaboration marks a significant step in addressing custody risks in the cryptocurrency derivatives market. Sygnum, which already provides crypto services to over 20 banks including Switzerland‘s PostFinance, brings its regulatory-compliant infrastructure to Deribit’s client base.
This partnership comes at a crucial time for the cryptocurrency industry, which continues to grapple with security concerns following major incidents. The 2022 collapse of FTX and the recent $1.4 billion Bybit hack have highlighted the importance of secure custody solutions, though Bybit successfully covered its losses.
“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. It is yet another reminder that separating crypto custody from exchange trading is essential for security,” stated Dominic Lohberger, Sygnum Chief Product Officer.
The implementation leverages Fireblocks’ Off Exchange solution, enabling seamless balance synchronization between assets held in Sygnum’s custody and their representation on the Deribit platform.
Deribit has positioned itself as an innovative player in the crypto derivatives space, notably becoming an early adopter of Hashnote’s tokenized Treasuries as collateral. According to Bloomberg, the exchange has attracted acquisition interest with valuations reaching up to $5 billion.
Meanwhile, Sygnum’s own growth trajectory remains strong, having secured $58 million in funding this January at a valuation exceeding $1 billion.
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