- Bitget adopts Sygnum Protect’s off-exchange custody platform to add an extra layer of security for users’ digital assets.
Legacy systems are usually painted as the bigger winners during integrations with blockchain and crypto-natives. The typical spiel focuses on how they can unlock 24/7 access, deep liquidity, near-instant settlements, and more. However, Sygnum’s partnership with Bitget flips the script.
Despite technically not being a part of the legacy banking system due to its innovative, digital asset-focused solutions, Sygnum demonstrates how crypto-natives, particularly crypto exchanges, can gain massive advantages by adopting regulated, institutional-grade banking architecture. It’s essentially a symbiotic relationship that both can leverage to level up their capabilities and offerings.
Bitget Adopts Sygnum Protect
Sygnum, a leading digital asset banking group, announced on Thursday that it has partnered with Bitget, a leading universal exchange (UEX) platform. Central to the alliance is Bitget’s adoption of Sygnum Protect, an off-exchange custody platform.
The partnership connects Bitget’s approximately 125 million users across more than 150 countries with Sygnum’s multi-regulatory regime-compliant, institutional-grade off-exchange platform, which now has more than $1 billion in AUM.
What the Partnership Unlocks
The partnership does not change the way institutional clients trade spot and derivatives on Bitget. However, it adds an extra layer of security in their execution and settlement flows by moving collateral off Bitget’s balance sheet and into Sygnum’s Swiss bank-grade digital asset custody services.
“Security and trust are the foundation of institutional adoption, and off-exchange custody now sits at the heart of both,” highlighted Gracy Chen, CEO of Bitget. “Working with Sygnum, our institutional clients can tap Bitget’s liquidity and product depth while their assets stay off our balance sheet, held with a regulated Swiss bank. As the market’s largest venues converge on bank-grade custody, this is fast becoming the standard institutions expect, and we are proud to help set it rather than follow it.”
With Sygnum Protect safeguarding the collateral in an off-exchange environment, market participants can greatly mitigate counterparty risks and select stable, yield-bearing collateral. Furthermore, they benefit from a walled, bankruptcy-remote infrastructure compliant with Swiss banking law. This way, they can maintain focus on execution, liquidity, capital efficiency, and their core investment strategies with less distraction and with greater confidence in the system.
“Off-exchange custody has become the settlement backbone of institutional digital asset trading,” said Thomas Eichenberger, Deputy Group CEO and Chief Strategy Officer, Sygnum Bank. “When the majority of the market’s trading volume can now clear against collateral held at a Swiss regulated bank, counterparty risk stops being the largest uncertainty in the trade.”
“Investors are empowered to fully focus on execution, liquidity, capital efficiency and their investment strategy,” Eichenberger continued. “We are proud to welcome Bitget, one of the world’s biggest exchanges, onto the Protect platform, and enable their customers to trade on their principal exchange with complete peace of mind.”
