Sygnum Integrates Deribit Into Its Off-Exchange Custody for Institutional Traders

Highlights:

• Sygnum integrates Deribit into its off-exchange custody platform for institutional traders.
• Fireblocks Off-Exchange enables traders to mirror assets while maintaining custody security.
• This integration enhances liquidity access and safeguards assets from counterparty risks.

Switzerland-based Sygnum has integrated Sygnum Protect, its off-exchange custody product, for Deribit, the biggest cryptocurrency derivatives marketplace in the world. This integration benefits institutional traders and allows them to keep their assets in an insured bank while using Deribit’s liquidity.

📣 News: Sygnum Expands its Off-Exchange Custody Platform to Include Deribit, World's Largest Crypto Derivatives Exchange

➡️ Sygnum Bank adds leading crypto derivatives exchange Deribit compatibility to Sygnum Protect, its off-exchange custody platform featuring bank-grade… pic.twitter.com/gmDfsaw1mJ

— Sygnum Bank (@sygnumofficial) March 5, 2025

Enhanced Security with Sygnum Protect

Sygnum Protect serves as a custody solution to institutional traders due to its elimination of the practice of pre-funding trading accounts. All assets are kept off the balance sheet, which minimizes counterparty risks while formulating a favorable trading environment. Integrating with Deribit enhances security in institutional crypto trading.

Fireblocks’ Off Exchange service mirrors assets to offer trades and custody solutions that do not require the exchange of assets. This offers protection against hacking, exchange insolvency, and other related fraudulent actions. According to Michael Shaulov, the CEO of Fireblocks, the integration will bring forward institutional integration by offering a standardized security solution.

Dominic Lohberger, the Chief of Products at Sygnum, stressed the need for counterparty risk management due to some recent cyber attacks. He pointed out that the separation of custody from trading in the exchange is a very vital factor in providing protection of institutional assets.

Institutional Traders Gain Access to Deribit’s Liquidity

With this integration, Sygnum Protect users can benefit from Deribit’s deep liquidity without having to deal with exchange risks. The partnership enhances transparency, security, and operational efficiency in institutional crypto trading.

According to Deribit’s CEO, Luuk Strijers, institutional traders need security alongside advanced trading tools. This integration guarantees that the clients enjoy a wide trading opportunity offered by Deribit while their funds are secured in a regulated banking system.

Sygnum’s regulated custody solution protects assets against market fluctuations and remains fully compliant with security laws. The possibility of obtaining perfectly matched assets while keeping full control over custody is beneficial for institutional traders whose aim is to trade without any risks.

Fireblocks Off Exchange Enables Automated Settlement

This expansion is made possible with Fireblocks’ Off Exchange technology. This enables traders to have full control over their stakes as well as execute instant trades on Deribit. Fireblocks guarantee that funds are kept safe from a variety of exchange-related risks by locking them in segregated wallets.

The technology also reduces the asset transfer complexity, through automated collateral management. This means that institutional traders can now trade spot, margin, and derivatives without handing over the asset ownership. This makes it a suitable option for professional traders since it increases security and offers more transparency.

Since its launch in early 2024, Sygnum’s Off Exchange custody platform has gained traction. Additionally, its flexibility in providing collateral options, consisting of fiat, crypto, and securities, makes it attractive to institutional market participants. Recently, Deribit announced that it is looking to expand operations in Hong Kong, citing the city’s perfect location in the Asian market. Hong Kong’s virtual asset roadmap has attracted global crypto firms amid growing institutional interest.