Digital asset bank Syngum is reporting a “surge” in utilization of its off exchange custody service in regards to institutions using Binance.
Sygnum is regulated in various jurisdictions. In Switzerland, the company holds a banking license and holds a CMS and Major Payments Institution approval in Singapore. Sygnum is also regulated in Abu Dhabi and Luxembourg and is registered in Liechtenstein.
Sygnum integrated with Binance a year ago. The custody service allows institutional traders, including hedge funds, market makers, and prime brokers, to hold their assets in Sygnum’s institutional-grade custody while trading on Binance. The assets serve as collateral and are pledged to Binance in return for a USD-denominated trading balance, which can be used for margin and derivatives trading activities.
Catherine Chen, Binance’s Head of VIP & Institutional, say the demand for institutional-grade crypto solutions continues to accelerate.
“More institutional clients are looking for secure ways to manage their assets as they increase adoption, and our industry-first collaboration with Sygnum reflects Binance’s commitment to providing the flexibility and security that institutional clients demand in today’s evolving market.”
Dominic Lohberger, Sygnum’s Chief Product Officer, says customers receive a double benefit as they can generate yield.
“The combination of Sygnum’s banking license and Binance’s liquidity creates a unique solution that aligns with the current market dynamics in institutional crypto trading, where demand for off-exchange solutions with regulated custodians is growing rapidly.”
