Switzerland-based Sygnum Bank has announced the expansion of its off-exchange custody platform, Sygnum Protect, to include Deribit, a leading crypto derivatives exchange. The integration allows institutional traders to store assets with a regulated bank while maintaining access to Deribit liquidity.

Sygnum Protect - Secure Solutions for Institutional Trading

Launching in early 2024, Sygnum Protect is an off-exchange custody service dedicated to institutional investors. Based on Fireblocks off-exchange technology, the platform enables mirroring of Sygnum custody assets on Deribit, providing a flexible yet secure trading experience.

According to Dominic Lohberger, Chief Product Officer at Sygnum, “The perception of counterparty risk in crypto is cyclical. The recent cyberattack has caused the largest wave of exchange de-risking since the FTX collapse.” He emphasized that separating asset custody from exchange is important to protect financial security.

Deribit CEO Luuk Strijers also praised the transparency and security that Sygnum Protect brings, helping institutional investors trade derivatives safely.

Fireblocks technology helps protect assets

Fireblocks’ off-exchange technology helps institutional investors lock assets in personal wallets while still being able to copy collateral to exchanges.

“This integration with Sygnum Protect and Deribit demonstrates the reliability and utility of Fireblocks Off-Exchange technology,” said Michael Shaulov, CEO of Fireblocks. He emphasized that exchanges and custodians can take advantage of standardized integration without the need for custom development, thereby enhancing security and attracting institutional investors.

Deribit Expands into Hong Kong

In addition to integrating with Sygnum, Deribit is also targeting the Hong Kong market as part of its expansion strategy.

The Hong Kong government is showing interest in developing the virtual asset ecosystem, including exploring virtual asset derivatives products for professional investors.

By partnering with Sygnum and expanding to Hong Kong, Deribit is facilitating investors while also contributing to the global digital asset ecosystem.