Sygnum Financial institution Expands Off Change Custody Platform to Embrace Deribit

Switzerland-based Sygnum Financial institution introduced on Wednesday it has expanded its off-exchange custody platform, Sygnum Shield, to include Deribit, a crypto derivatives trade.

In a press launch shared with CryptoNews, Sygnum mentioned this integration will enable institutional merchants to retailer their property with a regulated financial institution whereas accessing Deribit’s liquidity.

Launched in early 2024, Sygnum Shield is an off-exchange custody service for institutional merchants. Utilizing Fireblocks’ off-exchange expertise this enables merchants to reflect property held in Sygnum’s custody onto Deribit, giving them to entry Deribit’s buying and selling instruments.

“Counterparty danger consciousness in crypto is available in cycles, and the current main cyber-attack has triggered one of many largest waves of trade derisking since FTX,” mentioned Dominic Lohberger, Sygnum’s chief product officer.

“That is one more reminder that separating crypto custody from trade buying and selling is crucial for safety. Sygnum Shield is a necessary constructing block for strengthening the resilience of the crypto business,” provides Lohberger.

Institutional crypto merchants face challenges resulting from buying and selling platforms performing as each exchanges and custodians, creating safety vulnerabilities.

“We’re very happy to supply extra safety and transparency capabilities to our institutional purchasers trying to commerce crypto derivatives by way of Sygnum Shield,” mentioned Deribit’s CEO, Luuk Strijers.

“This integration offers the capabilities and safety assurances they require to commerce any of Deribit’s main merchandise comfortably.”

Fireblocks’ off-exchange tech permits the companies to programmatically lock property in their very own wallets whereas mirroring collateral to exchanges.

This setup signifies that merchants keep custody of their property always, mitigating the chance of shedding funds resulting from trade insolvency or safety breaches.

“This integration with Sygnum Shield and Deribit demonstrates the facility of Fireblocks Off-Change,” mentioned Michael Shaulov, CEO of Fireblocks.

“Exchanges and custodians can now leverage our standardized integration with out requiring customized improvement—accelerating institutional adoption so property might be securely held by way of regulated financial institution custody.”

Deribit Plans Hong Kong Growth

In February, Deribit can be setting its sights on increasing into Hong Kong, as the town intensifies efforts to develop into a number one hub for digital property.

The Dubai-based agency mentioned it’s drawn to Hong Kong’s status as a global monetary heart and the rising curiosity in cryptocurrencies amongst household workplaces and asset managers.

Deribit’s growth plans come as Hong Kong’s Securities and Futures Fee (SFC) unveiled a complete roadmap to develop the town’s digital asset ecosystem.

A key part of the plan includes exploring the introduction of digital asset derivatives tailor-made for skilled buyers with portfolios exceeding HK$8 million (roughly US$1 million).

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