Swiss digital asset bank Sygnum has partnered with Bitcoin lending platform Debifi to launch MultiSYG, a multisignature lending product set to debut in the first half of 2026. The platform allows borrowers to retain shared control of their Bitcoin collateral through distributed key management.
The service enables Sygnum clients to take out fiat loans backed by Bitcoin while maintaining verifiable control of their assets. Any transaction requires three of five key holders to authorize it, allowing borrowers to track and verify their collateral directly on the blockchain. The platform targets institutions and high-net-worth individuals seeking bank-grade lending services without surrendering full custody of their assets.
The MultiSYG platform will prevent rehypothecation, a practice where lenders reuse client collateral to back other financial deals. Debifi CEO Max Kei stated that borrowers should not need to trust custodians blindly, pointing to years of demand for non-custodial lending options.
Addressing Custody Concerns in Bitcoin Lending
The MultiSYG platform responds directly to risk management failures that destroyed major crypto lenders in 2022. Traditional Bitcoin-backed loans require borrowers to surrender full custody of their collateral to the lending institution. This creates counterparty risk where borrowers cannot verify whether their assets remain properly secured.
The multisignature structure distributes control across five parties including Sygnum, the borrower, and independent signers. This prevents any single entity from moving the collateral unilaterally. Pascal Eberle, initiative lead for Bitcoin projects at Sygnum Bank, explained that borrowers can hold their own keys while accessing regulated banking products and service.
Institutional adoption has accelerated in 2025, with major financial players including Deutsche Bank announcing crypto custody services for 2026. The push toward regulated custody solutions reflects growing demand from corporate clients who require institutional-grade security infrastructure without sacrificing asset control.
Bitcoin Lending Market Shows Strong Recovery
The institutional Bitcoin lending market has demonstrated recovery following the 2022 collapse of centralized lenders like Celsius and BlockFi. In April 2025, Ledn co-founder Mauricio Di Bartolomeo predicted interest rates on Bitcoin-backed loans would compress as traditional banks enter the market following regulatory changes.
The global Bitcoin-backed lending market comprised $8.5 billion in outstanding loans as of August 2024 and is projected to grow to approximately $45 billion by 2030, according to market research. Ledn processed $1.16 billion in cryptocurrency loans in the first half of 2024, while Cantor Fitzgerald launched a $2 billion Bitcoin lending program in July 2024.
The resurgence reflects stricter risk management practices adopted by surviving platforms. Lenders have implemented stronger collateral requirements, tighter liquidation thresholds, and increased transparency around rehypothecation policies. DeFi lending protocols have recovered more quickly than centralized platforms, with total value locked approaching 2021 record levels due to on-chain transparency.
However, challenges remain for widespread institutional adoption. Bitcoin price volatility still poses liquidation risks for borrowers during market downturns. Some investors remain skeptical of rehypothecation practices despite improved transparency measures. Regulated platforms like MultiSYG aim to address these concerns by combining traditional banking oversight with cryptographic proof of asset security.