Institutions Now Trade Securely as Bybit Vaults Assets in Swiss Bank Custody

Bybit, the world’s second-largest cryptocurrency exchange by trading volume, has announced a strategic partnership with Sygnum, a global digital asset banking group, to offer institutional clients access to Swiss-regulated, off-exchange custody via the Sygnum Protect platform. This collaboration aims to enhance security and transparency for institutional investors by combining Bybit’s deep liquidity and broad product range with the bank-grade asset protection provided by Sygnum. Institutions can now store their digital assets off Bybit’s balance sheet at Sygnum while continuing to trade spot and derivatives seamlessly on Bybit. Asset balances are synchronized in real time, and profits and losses are settled every eight hours, ensuring both operational transparency and capital efficiency [1].

The Sygnum Protect platform is recognized as the largest bank-operated off-exchange custody platform, with existing integration across exchanges representing more than 50% of global spot and derivatives trading volumes. This expansion strengthens Bybit’s institutional infrastructure and reinforces the platform’s commitment to high standards of trust and resilience. The partnership also aligns with growing demand for secure custody solutions among institutional investors, particularly after recent market volatility underscored the risks of holding assets directly on exchanges [2].

The platform’s security framework includes advanced software-hardware controls, strict governance, independent audits, and legal protections under Swiss banking law, which ensures that assets held in custody are bankruptcy-remote. This legal structure provides additional assurance for institutions concerned about counterparty risk. Yoyee Wang, Head of Bybit’s Business-to-Business Unit (BBU), highlighted that the collaboration addresses a critical challenge in institutional crypto adoption—managing risk while maintaining access to liquidity. The partnership not only provides clients with Bybit’s industry-leading products and liquidity but also ensures their assets are safeguarded under the highest Swiss banking standards [3].

Bybit has previously partnered with custodians such as Fireblocks, Copper, and Cactus. The addition of Sygnum marks a significant milestone in Bybit’s strategy to expand its custodial offerings. Sygnum’s Chief Product Officer, Dominic Lohberger, noted that the rapid adoption of Sygnum Protect by institutional clients on other major exchanges underscores the urgency of demand for bank-grade custody solutions. The collaboration with Bybit is a step toward enhancing the resilience of the crypto industry and providing institutional investors with secure trading environments [4].

Looking ahead, the Sygnum Protect platform plans to introduce automated collateral transfers between exchanges to further improve capital efficiency and asset allocation for institutional clients. For Bybit, the partnership represents another step toward its mission of building a secure, transparent, and institution-friendly trading environment. As the demand for regulated custody solutions continues to grow, this collaboration positions Bybit to better serve the evolving needs of institutional investors in the digital asset economy [5].

Source:

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

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

[3] Bybit Partners with Sygnum to Bring Off-Exchange, Swiss ... (https://www.prnewswire.com/apac/news-releases/bybit-partners-with-sygnum-to-bring-off-exchange-swiss-regulated-custody-to-strengthen-institutional-crypto-security-302550447.html)

[4] Bybit Partners With Swiss Bank to Boost Institutional ... (https://cryptodnes.bg/en/bybit-partners-with-swiss-bank-to-boost-institutional-custody-security/)

[5] Bybit and Sygnum Partner to Launch Off-Chain Custody ... (https://www.odaily.news/en/newsflash/447283)