Swiss Banking Safety Now Shields Institutional Crypto Assets via Bybit Pact

Bybit, the world’s second-largest cryptocurrency exchange by trading volume, has announced a strategic partnership with Sygnum, a Swiss-based digital asset banking group, to provide institutional clients with off-exchange custody services through the Sygnum Protect platform. This collaboration aims to enhance institutional confidence in the crypto space by combining Bybit’s deep liquidity and product range with Sygnum’s Swiss-regulated, bank-grade custody solutions. Institutional clients can now hold their assets off-balance sheet at Sygnum Bank while trading spot and derivatives on Bybit, with asset balances automatically mirrored on the exchange and profits and losses settled every eight hours to ensure capital efficiency and transparency [1].

The partnership is positioned as a key step in Bybit’s broader strategy to strengthen institutional trust in its platform. Sygnum Protect is highlighted as the largest bank-operated off-exchange custody platform, supporting exchanges that collectively account for over 50% of global annual spot and derivatives trading volumes. Bybit’s integration with Sygnum Protect reinforces its commitment to delivering institutional-grade security, with the platform offering advanced security layers such as software-hardware controls, strict governance, independent audits, and bankruptcy-remote asset custody under Swiss banking law [1]. This legal protection ensures that institutional assets are safeguarded even in times of market instability or exchange insolvency.

Sygnum Protect has already attracted major trading platforms such as Binance and Deribit, reflecting a growing industry demand for secure, off-exchange custody solutions. According to Dominic Lohberger, Sygnum’s Chief Product Officer, the partnership underscores the urgent need for such solutions as institutional capital increasingly enters the digital asset space. The rapid adoption of Sygnum Protect by institutional traders across leading exchanges demonstrates the market’s appetite for robust custody infrastructure that minimizes counterparty risk [2].

Bybit has been actively expanding its custody ecosystem, with previous partnerships with providers such as Fireblocks, Copper, and Cactus. The addition of Sygnum further diversifies and strengthens the security framework available to institutional clients. Yoyee Wang, Head of Bybit’s B2B Unit, emphasized that the partnership not only grants clients access to Bybit’s leading liquidity and products but also ensures their assets are protected under the highest standards of Swiss banking. This integration marks a new milestone in Bybit’s mission to build a secure and transparent trading environment for institutional investors [2].

Looking ahead, Sygnum has outlined plans to introduce automated collateral transfers between exchanges as part of its roadmap for Sygnum Protect. This feature is expected to enhance capital efficiency and asset allocation for institutional clients, addressing a key challenge in managing liquidity across multiple platforms [1]. As the crypto industry continues to evolve, the partnership between Bybit and Sygnum represents a significant development in institutional-grade infrastructure, providing a more resilient and secure trading environment for digital assets.

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[1] Bybit Partners with Sygnum to Bring Off-Exchange, Swiss-Regulated Custody to Strengthen Institutional Crypto Security (https://www.prnewswire.com/in/news-releases/bybit-partners-with-sygnum-to-bring-off-exchange-swiss-regulated-custody-to-strengthen-institutional-crypto-security-302550458.html)

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