Sygnum Protect Welcomes Deribit as Its Largest Crypto Derivatives Exchange Platform

Swiss crypto bank Sygnum has taken a big step toward making crypto trading safer. The Sygnum Protect platform welcomes Deribit as the largest global crypto

Sygnum, a Swiss crypto bank, has partnered with Deribit, one of the largest global crypto derivatives exchanges, to launch Sygnum Protect, a service that offers institutional traders greater protection for their digital assets.

The Sygnum Protect platform will integrate Deribit’s exchange and Off Exchange technology from Fireblocks to enable seamless trading capabilities for Deribit traders.

The partnership aims to provide traders with the benefits of both a bank partnership for regulatory safety and optimal access to the Deribit trading platform.

Sygnum has been rolling out its Sygnum Protect service since early 2024 to provide financial institutions with a way to segregate the trading and custody of their digital assets.

The service is designed to offer institutional traders an additional layer of protection against cryptocurrency exchange failures, such as FTX, or cyberattacks, which have become increasingly prevalent in the crypto industry.

As a result of the FTX collapse and several high-profile hacking incidents, a strong need has emerged to separate trading platforms from the storage facilities of crypto assets.

“This partnership is a testament to our commitment to providing innovative solutions that meet the evolving needs of our institutional clients,” said Dominic Lohberger, Chief Product Officer at Sygnum.

“Sygnum Protect is a unique service that combines the best of both worlds, offering institutions the regulatory safety and superior service of a bank partnership with the agility and efficiency of an institutional crypto trading hub.”

The integrated solution is designed to be highly adaptable to meet the specific requirements of institutional traders, who value both safety and flexibility in their trading operations.

“We are pleased to be working with Sygnum and Fireblocks to offer our institutional clients even greater choice and flexibility in how they manage their digital asset trading activities,” said Luuk Strijers, CEO of Deribit.

“This partnership will allow traders to access Deribit’s industry-leading trading tools and technology without compromising the safety and security of their funds, which will be held in Sygnum’s custody.”

“We are proud to be providing our technology for this important initiative,” said Michael Shaulov, CEO of Fireblocks.

“Our Off Exchange solution enables institutions to move funds and assets quickly and securely, while also keeping complete control over their digital assets.”

Sygnum Protect customers will benefit from the speed and efficiency of the Fireblocks Off Exchange solution, which enables customers to perform trades instantly without the need to transfer asset ownership.

This capability will be crucial for optimising the execution of trades and facilitating rapid trading activity. Moreover, the integration of the Off Exchange technology provides an extra layer of protection against unexpected platform failures or potential scam incidents.

Sygnum has already seen strong interest from institutional trading clients in its Sygnum Protect service since its launch earlier this year.

The service offers clients the flexibility to use fiat currencies, cryptocurrencies, or conventional securities as collateral, catering to the diverse needs of institutional investors.

Furthermore, assets used as collateral for traders on the Sygnum Protect service will not be part of the bank’s balance sheet, rendering them largely protected from any potential bankruptcy proceedings that may affect the bank.