Bybit And Sygnum Unveil Strategic Partnership For Institutional Crypto Custody

• Bybit and Sygnum partnered to allow institutional clients access to an off-exchange custody service for seamless trading and management of crypto assets.

Bybit, the world’s second-largest cryptocurrency exchange by trading volume, has recently announced its strategic partnership with Sygnum Bank, a digital asset banking group based in Switzerland. The new link-up aims to enhance the Sygnum Protect platform’s off-exchange custody services for institutional clients.

Perks Unlocked Under the Bybit and Sygnum Partnership

The new partnership allows Bybit’s institutional clients to maintain their assets in an off-balance sheet at Sygnum. It enables customers to trade spot and derivatives without moving their funds from the bank to the exchange, and vice versa, every now and then.

Sygnum mirrors client’s balances on Bybit. The platform settles any profits or losses incurred by users across their trades every eight hours. The partners said that the mechanism ensures capital efficiency and operational transparency.

ADVERTISEMENT## Setting the Bar in Off-Exchange Custody

The move reinforces Sygnum Protect’s status as the largest bank-operated off-exchange custody platform. Additionally, it reflects the same strategy as its rival Amina Bank employs to allow seamless crypto trading activities for institutional customers.

Sygnum’s off-exchange custody platform supports a growing number of exchanges, accounting for over 50% of the global annual spot and derivatives volumes. It safeguards customers’ assets through its multiple security layers, including advanced software and hardware controls, strict governance mechanisms, and independent audits.

Moreover, its assets under custody benefit from the legal protection afforded under Swiss banking laws, giving them safeguards even in times of market uncertainty.

ADVERTISEMENTBybit is also expanding its network of custody partners. The exchange has already established partnerships with other leading custody providers like Fireblocks, Copper, and Cactus, giving clients flexibility and confidence in safeguarding their assets. The addition of Sygnum in its list of partners marks a new milestone by bringing regulated, bank-grade off-exchange custody into the Bybit ecosystem.

Official Statements of Sygnum and Bybit Officials

Furthermore, Yoyee Wang, Head of Business-to-Business Unit (BBU) at Bybit, and Dominic Lohberger, Chief Product Officer at Sygnum, emphasized how the new partnership ties in with their companies’ shared vision of transparency, security, and elevating user experience.

“Crypto and stablecoin infrastructure is evolving, and managing counterparty risks is essential for further institutional adoption,” said Wang. “Our partnership with Sygnum Bank not only gives clients access to Bybit’s industry-leading products and liquidity, but also ensures their assets are safeguarded with the highest standards of Swiss banking.”

“Together, we are building a secure and transparent foundation for institutions to trade with confidence,” he added.

“Sygnum Bank remains committed to working with leading exchanges to enhance the resilience of the crypto industry and empower institutions to trade with peace of mind,” Lohberger stated. “The rapid adoption of Sygnum Protect by institutional clients trading on Binance, Deribit, and now Bybit, demonstrates the urgent need for bank-grade, off-balance sheet custody solutions.”

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