Sygnum, a global digital asset banking group, has reported that assets held on its Sygnum Protect off-exchange custody platform have now exceeded one billion US dollars. This milestone comes after an extraordinary 900 percent year-on-year expansion in 2025, underscoring demand from institutional players seeking secure entry into cryptocurrency markets.
Launched in partnership with Binance in April 2024 and subsequently expanded to include Deribit in March 2025 and Bybit in September 2025, Sygnum Protect connects users to exchanges accounting for over 50 percent of global spot and derivatives trading volumes.
In a sector where annual market activity surpasses half a trillion dollars, this infrastructure is becoming essential for traditional finance (TradFi) entities.
The platform’s primary innovation lies in its off-balance sheet custody model. Client assets are maintained in fully segregated, bankruptcy-remote accounts separate from Sygnum’s own balance sheet.
This arrangement, supported by the bank’s multi-layered security protocols and expert team, significantly reduces counterparty risks associated with direct exchange holdings, particularly during periods of intense market swings or potential platform disruptions.
A standout feature is the acceptance of US Treasury securities as collateral, which can continue to generate yields even after margin requirements are met.
Complementing these are support for major stablecoins like USDT and USDC, as well as a range of digital assets across multiple blockchains.
Flexible management tools, including fiat connections in major currencies, enable rapid deployment of capital without sacrificing safety or compliance.
This setup is particularly attractive to hedge funds, market makers, prime brokers, and other institutional traders.
It allows them to tap into the elevated volatility and 24/7 liquidity of crypto markets—far exceeding that of many traditional asset classes—while maintaining robust risk controls and operational resilience.
By segregating trading activities, participants can better navigate stress periods and pursue arbitrage and other revenue opportunities.
Dominic Lohberger, Sygnum’s Chief Product Officer, remarked that growing investor preference for trusted custodians stems from heightened awareness of security threats and past market incidents.
“Sygnum Protect strengthens industry resilience,” he stated, “empowering institutions to confidently explore digital assets.”
The bank plans to introduce additional collateral types and welcome more trading venues throughout 2026.
Alain Passini, Head of Risk at Wintermute, one of the platform’s users, added that in turbulent conditions, such custody solutions are critical for mitigating exposures.
The ability to earn returns on collateral provides a financial edge, blending efficiency with protection.
As crypto derivatives volumes ballooned to record levels in 2025, Sygnum’s solution reflects the broader professionalization of digital asset trading.
Backed by Switzerland’s regulatory framework, it is accelerating the integration of traditional finance with crypto, aiming for greater stability, liquidity, and responsible innovation ahead.