Sygnum Expands its Off-Exchange Custody Platform to Include Deribit, World’s Largest Crypto Derivatives Exchange

Sygnum, a global digital asset banking group, announces the expansion of Sygnum  Protect, its off-exchange custody platform, to include Deribit, the world’s largest crypto derivatives exchange. This  integration enables traders to hold their assets in a regulated bank with institutional-grade security, while  conveniently accessing the world’s largest crypto derivatives exchange’s deep liquidity.  

Sygnum was the first bank to launch off-exchange custody services for institutional traders with Sygnum Protect in early 2024. Sygnum Protect’s integration with Deribit now leverages Fireblocks’ innovative Off Exchange solution,  enabling traders to mirror assets held in Sygnum’s custody to Deribit while accessing its broad instrument universe. 

Sygnum Protect avoids the need to pre-fund trading venues by fully segregating trading and custody and also safeguards against defaults by exchanges. Sygnum’s bank-grade security and ability to hold client assets off-balance  sheet mitigates counterparty risk and enables traders to fully focus on their investment decisions.  

“Counterparty risk awareness in crypto comes in cycles, and the recent major cyber-attack has triggered one of the  largest waves of exchange derisking since FTX. It is yet another reminder that separating crypto custody from exchange  trading is essential for security,” says Dominic Lohberger, Sygnum Chief Product Officer. “Sygnum Protect is also an  essential building block for strengthening the resilience of the crypto industry.” 

The need for counterparty risk mitigation and additional layers of security has become increasingly crucial in the  institutional crypto trading space where trading venues also act as custodians. To counter the threat from increasingly  sophisticated cyber-attacks, close industry collaborations such as those between Sygnum, Deribit and Fireblocks that  centre on robust security are fast becoming mission critical. 

“We are very pleased to offer additional security and transparency capabilities to our institutional clients looking to  trade crypto derivatives through Sygnum Protect,” says Luuk Strijers, CEO of Deribit. “This integration provides  institutional traders with both the capabilities and security assurances they require to trade any of Deribit’s leading  products comfortably.”

Fireblocks Off Exchange enables trading firms to maintain control over their assets while traders execute instant spot,  margin and derivatives trades. Firms programmatically lock assets in wallets they control, mirroring collateral to the  exchange without ever giving up custody of their own digital assets. The assets remain securely segregated in shared  MPC wallets, and on-chain settlement is utilised to ensure that funds are safe from hacks, bankruptcy or fraud. 

“This integration with Sygnum Protect and Deribit demonstrates the power of Fireblocks Off Exchange,” says Michael  Shaulov, CEO of Fireblocks. “Exchanges and custodians can now leverage our standardised integration without  requiring custom development — accelerating institutional adoption so assets can be securely held via regulated bank  custody.” 

Since Sygnum became the world’s first bank to launch its Sygnum Protect off-exchange custody services for  institutional traders, it has attracted strong demand. Sygnum Protect enables flexible collateral optionsi, including fiat,  crypto, and traditional securities, with assets held off-balance sheet in bankruptcy-remote custody with Sygnum Bank.