Bybit and Sygnum announced today a partnership to offer institutional clients off-exchange custody through Sygnum Protect. The service links Bybit’s trading platform with Swiss-regulated custody at Sygnum Bank. 

It aims to let institutions keep assets off the balance sheet while they trade on Bybit. Asset balances will mirror instantly on the exchange. Trading profit and loss will settle automatically every 8 hours.

What the integration does?

The new link lets Bybit’s institutional clients hold assets at Sygnum Bank while they trade spot and derivatives on Bybit. Balances at Sygnum show up on Bybit right away. 

Trading gains and losses are settled every 8 hours. That setup is meant to keep capital working while giving firms legal separation between custody and exchange operations.

Security and oversight

Sygnum Protect is a bank-run off-exchange custody system. It uses multiple security layers and governance controls. The platform is audited and operates under Swiss banking rules. Sygnum says custody is bankruptcy remote. 

That point is meant to reassure clients that assets are handled with legal protections and strict controls.

The platform covers exchanges that together handle more than 50% of global annual spot and derivatives volumes. Adding Bybit expands that network. The service aims to give institutions a consistent custody option across major markets.

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Bybit’s custody choices

Bybit already works with custody firms such as Fireblocks, Copper, and Cactus. The Sygnum deal brings a regulated bank into this mix. Bybit said the move adds another option for clients who want bank-grade security while using the exchange’s liquidity and products.

The integration should let institutions move assets across platforms with less friction. It may also help funds that need to meet strict custody rules or internal controls.

Comments from leaders

Yoyee Wang, who heads Bybit’s Business-to-Business unit, said the partnership helps reduce counterparty risks for institutions. He noted the tie-up gives clients access to Bybit’s products and Sygnum’s custody under Swiss law. 

Dominic Lohberger, Sygnum’s chief product officer, said the firm is working with leading exchanges to boost resilience. He pointed to the fast uptake of Sygnum Protect by clients on other exchanges as a sign of demand.

Broader moves at Sygnum

Sygnum has made other moves to expand its services. Christopher Giancarlo, the former chairman of the U.S. CFTC, has joined Sygnum as a senior policy advisor. His role is meant to strengthen the bank’s regulatory engagement as it grows abroad. 

Sygnum has also added lending that accepts staked Solana tokens as collateral. That change opens funding lines secured by yield-producing assets in multiple currencies.

What this means for institutions?

The deal seeks to give large traders and funds more options for custody. Keeping assets off-balance sheet at a bank can help meet legal and audit rules. 

Mirrored balances and regular P&L settlement aim to keep trading smooth. For clients that need regulated custody and quick access to markets, the model could be useful.

The Bybit and Sygnum tie-up expands choices for institutional clients that want bank-level custody while trading on major venues. It links Bybit’s liquidity and product set with Swiss legal protections and audited custody systems.

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