Bybit and Sygnum Bank Partner to Deliver Swiss-Regulated Custody for Institutional Crypto
Highlights:
- Bybit and Sygnum Bank launch a new off-exchange custody service for institutional clients.
- Assets remain secure under Swiss law while enabling seamless spot and derivatives trading.
- The platform supports more than 50% of the world’s spot and derivatives trading volumes.
Swiss digital asset bank Sygnum Bank and the Dubai-based crypto exchange, Bybit, have signed a strategic partnership to upgrade institutional crypto custody. The collaboration provides secure, off-exchange asset storage for institutional clients while allowing them to trade spot and derivatives on Bybit.
As per the press release, client balances are instantly mirrored on Bybit, thereby eliminating the need to move funds. Trading profits and losses are automatically settled every 8 hours, increasing the capital efficiency and transparency. The assets are off-balance sheet, and they are deposited at Sygnum Bank in accordance with Swiss law. This provides a high level of protection to the institutions with complete legal clarity and operational security.
📢 Sygnum Bank integrates @Bybit_Official into its Protect Off-Exchange Custody platform
✅ Enables spot and derivatives trading with assets held off-balance sheet
✅ Asset balances held with Sygnum Bank instantly mirrored on exchange, P&L automatically settled every eight hours… pic.twitter.com/uSNpA2RRB7— Sygnum Bank (@sygnumofficial) September 9, 2025
Bybit and Sygnum Bank Expand Regulated Custody Access
Bybit is now part of the Sygnum Protect platform alongside Binance and Deribot. This network comprises more than 50% of spot and derivatives trading volume worldwide. It has rapidly established itself as the world’s largest bank-operated off-exchange custody system.
Sygnum Protect has a number of security layers, including strong governance, audited processes, and advanced hardware-software protection. Clients benefit from the bankruptcy-remote custody, which allows them to trade safely, even during market volatility.
Dominic Lohberger, Chief Product Officer at Sygnum, said:
“The swift integration of Sygnum Protect by institutional clients trading on Binance, Deribit and currently Bybit, underscores the necessity of bank-grade off-balance sheet custody solutions.”
The addition of Bybit to the custody network is an extension of a larger strategy. The exchange also works with other custody providers like Fireblocks, Copper, and Cactus. Sygnum’s inclusion now adds Swiss-regulated custody to that offering.
Yoyee Wang, Head of Bybit’s Business-to-Business Unit, said:
“Clients can now have access to industry-leading products and liquidity at Sygnum Bank However, it also makes sure their assets are protected to the highest standards of Swiss banking.”
Growing Demand for Secure, Efficient Trading Platforms
This partnership comes in the wake of growing fears around counterparty risk in institutional trading of crypto. Institutions now gain access to liquidity and trading depth without having to leave assets sitting on the exchange’s balance sheet. The off-exchange model reflects balances directly on Bybit and guarantees automated P&L settlement every eight hours. This approach lowers risk and enhances operational efficiency without compromising control of the assets.
The deal also supports the continuing trend towards regulated infrastructure in the digital finance space. As institutions call for better security needs, exchanges and banks are building deeper partnerships to meet those needs.
Looking forward, Sygnum is planning on automating collateral transfers between integrated exchanges. This step will further enhance asset allocation and trading efficiency for institutions that operate over multiple platforms.
In August, Sygnum Bank also added support for the SUI token. This addition allowed institutional clients to access regulated custody, trading, staking, and lending services for SUI. The move was part of Sygnum’s efforts to broaden its digital asset offerings to professional investors.
🇨🇭 Sui goes Swiss-bank-grade.
Sui is now fully integrated into Sygnum’s regulated banking platform – unlocking custody, trading, staking, and treasury services for institutional clients.
A major step toward scaling Sui’s ecosystem for global finance. https://t.co/QINXNujC1V
— Sui (@SuiNetwork) August 8, 2025
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Raymond Munene
Raymond Munene is a crypto content writer who contributes to Crypto2Community. With over three years of experience, he is interested in Bitcoin, Blockchain, and Technical Analysis. Focusing on daily market analysis, his research helps traders and investors alike. His particular interest in cryptocurrency and blockchain aids his audience.
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