Swiss digital asset bank Sygnum Bank has partnered with lending startup Debifi to introduce a new platform called MultiSYG, which they claim is the first bank-backed loan service that allows borrowers to retain partial control of their Bitcoin ($BTC) collateral.
Key Details of the Offering
- Target Audience: The service, slated for a first-half 2026 launch, is aimed at institutions and high-net-worth individuals.
- Addressing Rehypothecation: MultiSYG directly tackles concerns over rehypothecation—the practice where lenders reuse a client’s collateral—a common fear among digital asset holders dealing with traditional finance or earlier crypto lending platforms.
- Non-Custodial Model: Unlike most bank-backed loans that require the lender to take full custody of the collateral, MultiSYG employs a multi-signature (multi-sig) wallet model. The borrower’s BTC will be held in a wallet requiring three out of five signatures for any movement, with Sygnum, the borrower, and independent signers each holding a key.
- Borrower Benefits: This setup allows borrowers to maintain cryptographic proof of their holdings on-chain and partial control, thus preventing the lender from rehypothecating the assets.
- Combining Security and Banking: Sygnum and Debifi emphasize that this structure offers the security of holding one’s own keys alongside access to regulated banking products (like favorable pricing, drawdown flexibility, and loan duration) and white-glove service.
This move highlights the increasing institutional demand for more sophisticated, risk-mitigating financial products in the digital asset space, moving past the single-point-of-failure issues seen with failed centralized crypto lenders like BlockFi and Celsius.
October 2025, Cryptoniteuae
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