Bybit and Sygnum Collaborate to Enhance Security in Institutional Crypto Custody

Bybit and Sygnum's Strategic Partnership

In a significant move towards enhancing security in the cryptocurrency trading sphere, Bybit, the second-largest cryptocurrency exchange globally by trading volume, has announced a strategic partnership with Sygnum, a leading digital asset banking group based in Switzerland. This collaboration aims to offer institutional clients access to secure, off-exchange custody through the Sygnum Protect platform, designed to bolster the confidence of institutions in the evolving digital assets landscape.

Strengthening Institutional Security

The partnership between Bybit and Sygnum integrates two powerhouses in the crypto space. Bybit is renowned for its diverse product offerings and high liquidity, while Sygnum provides bank-grade security compliant with Swiss regulations. This collaboration allows Bybit’s institutional clients to hold their assets off-balance sheet through Sygnum Bank while actively engaging in trading activities. The immediate mirroring of asset balances on the Bybit exchange, coupled with automated trading profit and loss settlements occurring every eight hours, fosters an efficient and transparent trading environment for clients.

Sygnum Protect stands as a robust platform, covering exchanges that account for over 50% of global spot and derivatives trading volumes. This integration not only elevates Bybit's standing within the institutional investor community but also showcases its commitment to adopting the highest security standards.

A New Standard for Asset Custody

The Sygnum Protect platform employs multi-layered security measures designed to protect institutional assets, encompassing advanced software and hardware controls, strict governance, and independent audits. Moreover, the legal frameworks established under Swiss banking law create a safety net for clients, assuring them that their investments are shielded even amid market uncertainties.

Bybit has previously established relationships with trusted custody partners such as Fireblocks, Copper, and Cactus, underscoring its dedication to providing clients with flexibility and assurance in asset protection. The recent addition of Sygnum Bank capabilities introduces a new level of regulated, bank-grade custody solutions, thus marking a pivotal enhancement in Bybit’s custody offerings.

Responding to Market Needs

According to Yoyee Wang, head of Bybit’s Business-to-Business Unit, effective counterparty risk management is crucial for increasing institutional adoption. He emphasized that the partnership with Sygnum not only facilitates access to Bybit's top-of-the-line products and liquidity but also reinforces the safety of clients' assets in accordance with Swiss banking standards. The collaboration aims to build a strong, secure foundation for institutions to engage in cryptocurrency trading confidently.

Dominic Lohberger, Sygnum’s Chief Product Officer, reflected on the increasing adoption of Sygnum Protect among institutional clients, noting its usage by major exchanges such as Binance, Deribit, and now, Bybit. This highlights the urgent demand for bank-grade custody solutions that operate off-balance sheet.

Future Developments

Looking forward, the Sygnum Protect platform is set to introduce automated collateral transfers among exchanges, which will further improve capital efficiency and asset allocation for institutional clients. As Bybit continues to pursue its mission of fostering a secure and innovative trading atmosphere, this collaboration symbolizes a critical evolution in how institutions manage digital assets.

Bybit has and will continue to redefine the cryptocurrency space, ensuring that institutions are equipped with the necessary tools to thrive in this rapidly changing environment. With the power of Bybit and Sygnum combined, the future of crypto trading appears safer and more accessible for institutional investors.

About Bybit

Established in 2018, Bybit has rapidly risen to become the second-largest cryptocurrency exchange worldwide, serving a global user base exceeding 70 million individuals. The platform focuses on creating an open and egalitarian ecosystem aimed at fostering innovation and bridging traditional financial services with decentralized finance (DeFi). Renowned for its high-security custody, user-friendly experience, and advanced blockchain tools, Bybit positions itself at the forefront of cryptocurrency evolution.

About Sygnum

Sygnum, operating under Swiss and Singaporean heritage, empowers professional and institutional investors to navigate the digital assets landscape with confidence. By providing institutional-grade security and expert services, Sygnum facilitates access to robust digital asset banking and management solutions. Its commitment to fostering trust in the digital asset economy positions Sygnum as a key player in the Future Finance initiative.