Swiss digital asset bank Sygnum has announced a partnership with Bitcoin lending startup Debifi to launch MultiSYG, a groundbreaking platform for Bitcoin-backed loans aimed at high-net-worth individuals and institutions.
The product is scheduled to debut in the first half of 2026, introducing a new level of transparency and security to crypto lending.
At the heart of MultiSYG is a 3-of-4 multisignature (multisig) wallet system, designed to eliminate the long-standing risk of rehypothecation, the controversial practice of reusing client collateral to generate additional yield. Under this model, collateralized Bitcoin is held in an on-chain escrow account that can only be moved with three of four cryptographic signatures.
How It Works
The four wallet keys are distributed among the borrower, Sygnum (the lender), Debifi, and an independent keyholder. This structure allows borrowers to verify their Bitcoin’s safekeeping on-chain, ensuring their assets aren’t re-lent or otherwise misused. It also protects lenders, as borrowers cannot unilaterally withdraw funds.
Rehypothecation Prevention by Design
Sygnum and Debifi’s approach directly tackles one of crypto lending’s biggest flaws, the unchecked reuse of customer collateral, a key factor in the collapses of Celsius and FTX in 2022. By locking Bitcoin in a verifiable, multi-party escrow throughout the loan duration, MultiSYG ensures the collateral remains “bankruptcy remote,” giving both sides full transparency and peace of mind.
A Bridge Between Banks and Bitcoin
For borrowers, MultiSYG provides a way to access liquidity without selling Bitcoin, helping avoid taxable events while retaining partial control of their holdings. Institutional lenders, on the other hand, gain exposure to the crypto credit market through a fully regulated, transparent, and auditable structure.
With MultiSYG, Sygnum and Debifi are merging traditional banking oversight with decentralized technology, setting a new benchmark for secure Bitcoin financing. As institutional adoption accelerates, this hybrid model could redefine how digital asset collateral is managed across global financial markets.