Institutional Investors Get Bank-Grade Crypto Custody via Bybit and Sygnum Partnership

Swiss digital asset bank Sygnum has partnered with Bybit, the Dubai-based cryptocurrency exchange, to offer institutional clients access to Swiss-regulated, off-exchange custody solutions. The collaboration integrates Bybit’s trading capabilities with Sygnum’s Protect platform, allowing clients to store their digital assets at the bank while continuing to trade spot and derivatives on Bybit’s exchange. The integration ensures real-time asset balance mirroring and automatic profit and loss settlements every eight hours, enhancing transparency and capital efficiency for institutional investors [1].

Sygnum Protect, already recognized as the largest bank-operated off-exchange custody platform, now includes Bybit among its partners, joining Binance and Deribit. This partnership broadens Bybit’s institutional offerings by introducing an additional layer of security and regulatory compliance, leveraging Sygnum’s Swiss banking framework. Assets held through Sygnum Protect are legally protected as bankruptcy-remote under Swiss law, offering stronger safeguards for institutional investors during periods of market volatility [2]. The platform also employs advanced software-hardware security, independent audits, and strict governance controls to further enhance asset protection.

The integration reflects Bybit’s broader strategy to expand its custody ecosystem, which already includes partnerships with Fireblocks, Copper, and Cactus. However, the addition of Sygnum marks a significant milestone by introducing a regulated, bank-grade custody option into the Bybit environment. This development aligns with the growing demand among institutional investors for secure and transparent infrastructure that can mitigate counterparty risk. Yoyee Wang, head of Bybit’s business-to-business division, emphasized that the partnership addresses a critical challenge in crypto adoption—risk management—while ensuring clients can access Bybit’s liquidity and product suite with enhanced asset security [3].

Dominic Lohberger, Sygnum’s chief product officer, noted that the rapid adoption of Sygnum Protect highlights the urgent need for robust custody solutions in the crypto industry. The platform’s existing integration with exchanges covering over 50% of global spot and derivatives trading volume demonstrates its scalability and relevance. With Bybit now part of this ecosystem, the initiative is expected to further strengthen the trust and resilience of the digital asset market [1]. Lohberger added that the collaboration underscores Sygnum’s commitment to partnering with leading exchanges to enhance market infrastructure and support institutional trading with greater confidence.

Looking ahead, Sygnum has outlined plans to introduce automated collateral transfers between exchanges as part of its roadmap for Sygnum Protect. This feature aims to improve capital efficiency and asset allocation for institutional clients, further solidifying the platform’s role in the evolving digital asset landscape. For Bybit, the partnership is a strategic step toward reinforcing its commitment to institutional-grade transparency and security. The exchange has positioned itself as a key player in the crypto space by offering a combination of deep liquidity and advanced infrastructure, all backed by Swiss-regulated banking standards [2].

Source:

[1] Bybit Partners with Sygnum to Offer Swiss-Regulated (https://cryptonews.net/news/market/31580167/)

[2] Bybit taps Sygnum Bank for Swiss-regulated custody and (https://www.mitrade.com/insights/news/live-news/article-3-1105132-20250908)

[3] Swiss Bank Sygnum Partners With Bybit to Safeguard ... (https://coindoo.com/swiss-bank-sygnum-partners-with-bybit-to-safeguard-institutional-crypto-assets/)