Crypto Bank Sygnum Partners with Deribit for Secure Trading

Story Highlights

• Sygnum Protect Shields Traders from Exchange Failures and Hacks

• Institutional Traders Gain Security Without Sacrificing Liquidity

• Sygnum Protect Attracts Growing Interest from Institutional Clients

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 derivatives exchange platform. Traders gain regulatory safety for their assets through the bank partnership, but they can access Deribit trading platform effortlessly.

Sygnum Protect Offers Shield Against Crypto Exchange Failures

In early 2024, Sygnum introduced Sygnum Protect as its solution to provide financial security to institutional traders. Through this integration, Deribit traders can leverage Off Exchange technology provided by Fireblocks. The system functions by letting users keep replica assets under custody at Sygnum while performing trades on Deribit. Users can protect their funds through this method when avoiding exchange failures together with cyberattacks.

The increased alarm regarding crypto safety has emerged as a critical issue in recent times. The FTX collapse, alongside hacking incidents, resulted in numerous traders losing their capital. Today’s strong need exists to split trading platforms from crypto asset storage facilities. According to Sygnum’s Chief Product Officer, Dominic Lohberger, this alliance secures the protection of crypto trading operations.

The integrated solution fulfills the needs of institutional traders by providing safety along with adaptability. Deribit CEO Luuk Strijers stated how this partnership permits traders to work with Deribit’s trading tools without endangering their funds. From his perspective, Michael Shaulov of Fireblocks declared that their technology protects funds against theft and fraud.

Sygnum Protect Attracts Institutional Traders for Secure Custody

Through Off Exchange solution from Fireblocks customers gain complete control over their assets. Users benefit from instant trading capabilities, which do not involve transferring asset ownership. The protection against unexpected platform failure or scam incidents becomes more effective with this solution.

From its launch of Sygnum Protect, the bank received increased interest from institutional trading clients. The service gives users the option to use fiat currencies as well as crypto and conventional securities for collateral. The protection of assets from bankruptcy proceedings is enabled because assets are not listed on the balance sheet.

The crypto trading environment benefits from enhanced security due to this business alliance between Sygnum and Deribit together with Fireblocks. Their focus on security alongside transparency enables institutional traders to protect their assets and conduct trading operations with confidence.