Bybit taps Sygnum Bank for Swiss-regulated custody and off-exchange settlement

In this post:

• Bybit has partnered with Sygnum Bank to provide institutional clients with secure and off-exchange custody of their digital assets via the Sygnum Protect Platform.
• The collaboration allows the exchange’s clients to hold assets off-balance sheet at Sygnum Bank while trading spot and derivatives on Bybit.
• Asset balances on the exchange and trading P&L will be settled automatically every eight hours for capital efficiency and operational transparency.

Bybit has partnered with global digital asset group Sygnum to provide institutional clients with secure, off-exchange custody. The world’s second-largest crypto exchange by trading volume said it will offer off-exchange custody through the Sygnum Protect Platform.

Bybit said the collaboration with the bank positions the company as a trusted partner for institutions. The integration combines the crypto exchange’s broad product range and deep liquidity with the bank-grade security of Swiss-regulated custody.

Bybit hopes to strengthen institutional crypto security

Counterparty risk awareness in the crypto industry moves in cycles, with peaks triggered by major crises. The Bybit hack, arguably the most significant risk-off event since the FTX collapse in November 2022, is shaping up to be the catalyst for the next wave of heightened… pic.twitter.com/TAxkI1Nra6

— Sygnum Bank (@sygnumofficial) February 26, 2025

The Dubai-based crypto exchange revealed that its clients can now hold assets off-balance sheet at Sygnum Bank while trading spot and derivatives on Bybit. The initiative will instantly mirror asset balances on the exchange. According to Bybit, trading P&L will also be settled automatically every eight hours to ensure both capital efficiency and operational transparency.

Bybit said it chose Sygnum Protect because it’s the largest bank-operated Off-Exchange Custody platform. The bank also currently covers crypto exchanges that collectively account for over 50% of global spot and derivatives volumes. The crypto exchange said the initiative reinforces its commitment to providing institutional investors with the highest standards of security, resilience, and trust.

Sygnum integrates multiple security layers, including advanced software-hardware controls, strict governance and independent audits. The bank also integrates the legal protection of bankruptcy-remote asset custody under Swiss banking law.  The crypto exchange argued that Sygnum’s security measures give institutional clients peace of mind that their assets are safeguarded even in times of market uncertainty.

Dominic Lohberger, Sygnum’s chief product officer, said the organization is committed to working with leading exchanges to enhance the resilience of the crypto industry and empower institutions to trade with peace of mind. He noted that the rapid adoption of Sygnum Project by institutional clients trading on Binance, Deribit, and now Bybit, suggests the urgent need for bank-grade, off-balance sheet custody solutions.

Bybit plans to expand its custody ecosystem

Bybit said it plans to expand its custody ecosystem, having built a robust network of trusted custody partners, including Fireblocks, Copper, and Cactus. The firm said the custody ecosystem gives its clients flexibility and confidence in safeguarding their assets.

“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.”

-Yoyoo Wang, Head of Bybit’s Business-to-Business Unit (BBU).

The B2B official also acknowledged that crypto and stablecoin infrastructure is evolving and managing counterparty risks is essential for further institutional adoption. The crypto exchange added that the collaboration with Sygnum Bank marks a new milestone in its strategy and will bring regulated, bank-grade off-exchange custody into the Bybit ecosystem.

Sygnum revealed that the next phase of its roadmap will be to introduce automated collateral transfers between exchanges. The bank hopes to further enhance capital efficiency and asset allocation for institutional clients.

Bybit also said the partnership complements its mission of creating a secure, transparent, and innovative trading environment for institutions to thrive in the crypto industry.