Sygnum Bank is making a significant move into Bitcoin lending with a new product that utilizes a multisignature custody model, allowing borrowers to maintain greater control over their assets. The Swiss digital asset bank has partnered with Bitcoin-backed lending platform Debifi to launch this innovative lending product, which is expected to debut in the first half of 2026 and will be available to all Sygnum Bank customers.
The core feature of this product is a Bitcoin-native multisign lending model. This model allows clients to retain shared control of their Bitcoin collateral through distributed key management. This approach ensures that assets cannot be rehypothecated, a practice where collateral is reused for multiple loans, adding a layer of security and transparency for borrowers.
Under this system, borrowers taking out fiat loans backed by Bitcoin will participate in a setup that requires three out of five key holders to authorize any transaction. This distributed key management system empowers borrowers to directly track and verify their collateral on-chain. Sygnum emphasizes that this model addresses a growing demand from Bitcoin investors who want to retain verifiable control over their collateral throughout the loan term.
Sygnum's move comes amid a resurgence of Bitcoin-backed loans in the cryptocurrency market. In April 2025, Bitcoin mining company Riot Platforms secured a $100 million credit facility from Coinbase Prime, using its Bitcoin holdings as collateral. Coinbase Prime extended another $100 million loan to mining company Cleanspark in September 2025. Cleanspark also secured a second $100 million line of credit backed by its Bitcoin treasury from Two Prime in the same month. Cantor Fitzgerald also issued Bitcoin-backed loans to FalconX and Maple Finance in May 2025. FalconX confirmed a facility exceeding $100 million under a broader credit arrangement, while Maple Finance completed the first tranche of its deal with Cantor.
Sygnum Bank has been expanding its services in the digital asset space. In August 2025, Sygnum announced a partnership with the Sui Foundation, offering custody, trading, staking, and lending solutions for the SUI cryptocurrency. Sygnum was also the first Swiss bank to fully integrate and launch SUI into its regulated banking platform in July 2025, offering services such as custody and trading. The bank also offers SUI staking for yield generation and SUI collateral-backed Lombard loans for additional liquidity.
The bank has also been involved in Bitcoin-backed tokenized private credit. In August 2025, Sygnum opened access to Bitcoin-backed tokenized private credit in a transaction with Ledn. The instrument was structured as part of the refinancing of a USD 50 million syndicated loan to Ledn, which originally marked the industry's first syndicated loan backed by Bitcoin in 2024.
Sygnum's regulated product portfolio and bank-grade infrastructure provide a trusted gateway for financial institutions, banks, asset managers, and high-net-worth individuals to invest in digital assets. Sygnum holds a banking license in Switzerland and CMS and Major Payment Institution licenses in Singapore. The group is also regulated in Abu Dhabi, Luxembourg, and Liechtenstein.
