Swiss digital asset bank Sygnum Bank has partnered with Bitcoin lending startup Debifi to launch what both describe as the first bank-backed Bitcoin loan platform that allows borrowers to retain control of their BTC. The new service, named MultiSYG, is scheduled to launch in the first half of 2026. It targets institutions and high-net-worth investors seeking access to bank-grade loan services while avoiding rehypothecation, a process where lenders reuse client collateral for other deals.
A New Standard for Institutional Lending
MultiSYG aims to change how Bitcoin-backed loans are managed by offering non-custodial lending through multi-signature wallet infrastructure. This technology ensures that borrowers maintain partial control of their collateral while still meeting regulated lending requirements. According to Debifi CEO Max Kei, borrowers “shouldn’t need to trust a custodian blindly,” noting the demand for secure, transparent lending models.
Sygnum already operates digital-asset lending services that let clients obtain credit lines secured by crypto collateral. The bank confirmed that it uses multi-signature processes to validate and execute all transactions, ensuring no single entity can move funds independently.
Multi-Signature Custody and Asset Protection
Sygnum’s upcoming platform extends these safeguards specifically to Bitcoin lending, with enhanced institutional risk management and regulated oversight. Under this model, borrower collateral remains locked in custody and cannot be reused or repledged by the bank. Sygnum confirmed that pledged assets “are not reused” and are held in a bankruptcy-remote custody setup.
By adopting this technique, borrowers will be able to obtain liquidity from a secure source, and at the same time, they will have complete control over their Bitcoin possession. In the case of crypto loans, borrowing typically means granting the lender or an intermediary full custody rights, which leaves one dependent and carries a risk of losing the collateral. However, MultiSYG eliminates that risk since it has defined procedures for pledging and recovery that are supported by cryptographic proof, which is verifiable.
In an interview with the media, Pascal Eberle, Sygnum’s Bitcoin@Sygnum and MultiSYG initiative lead, declared, “This combines the best of both worlds—the ability to hold your own keys while accessing regulated banking products and white-glove service.” Moreover, he claimed that borrowers would enjoy not only bank-like pricing but also flexibility in drawdown and various loan terms while maintaining partial control over their BTC.
Institutional Adoption and Regulatory Integration
The unveiling of MultiSYG coincides with the increasing demand from institutions for advanced crypto-collateralized lending products. Sygnum’s top managers assert that on-chain Bitcoin collateral enables immediate margin calls and provides more substantial loan-to-value ratios than the off-chain setups of traditional lending.
This structure may help unify the two worlds of finance and decentralized asset custody by providing a compliant framework that aligns with the decentralized nature of cryptocurrencies. However, questions still need to be answered regarding the loan-to-value ratios, interest rates, and the entire liquidation process in the event of a volatile market. Sygnum has only mentioned that the service will have “competitive terms” and “flexible credit lines,” but did not provide any specifics regarding the parameters.
Sygnum’s MultiSYG platform represents a significant leap forward in secure, regulated Bitcoin-backed lending. It employs multi-signature security along with institutional-grade safeguards and client custody, thus setting a precedent for the evolution of digital asset lending under a banking framework.