Swiss digital asset bank partners with Debifi to offer Bitcoin-backed fiat loans with client-controlled custody
Sygnum Bank, a leading Swiss digital asset institution, has announced a partnership with Debifi to introduce a Bitcoin-backed lending product that leverages a multisignature custody model, allowing clients to retain partial control of their collateral throughout the loan term.
The innovative product — branded as MultiSYG — will enable clients to borrow fiat currency against Bitcoin holdings while maintaining on-chain verifiable control through a three-of-five distributed key management system. This means that no single party, including Sygnum, can unilaterally move or rehypothecate client assets.
The product is set to launch in the first half of 2026, with full availability for Sygnum Bank’s global client base upon release.
Growing Demand for Transparent Bitcoin Lending
The move underscores a growing trend toward on-chain transparency and non-custodial financial products in institutional crypto banking. According to Zurich-based crypto analyst Matthias Heller, “Multisignature lending marks a major evolution for Bitcoin finance. It bridges traditional credit structures with blockchain verification — something risk-averse investors have long wanted.”
By giving borrowers the ability to track collateral movements directly on-chain, Sygnum’s model addresses long-standing concerns over opaque rehypothecation practices common in crypto lending during the last market cycle.
Bitcoin-Backed Loans Regain Popularity
The Bitcoin lending market has seen a resurgence in 2025, driven by rising institutional liquidity and renewed investor confidence in Bitcoin’s stability.
In April, Riot Platforms used its Bitcoin reserves to secure a $100 million credit facility from Coinbase Prime, followed by similar deals involving Cleanspark, Two Prime, and Cantor Fitzgerald through FalconX and Maple Finance.
Analysts expect Sygnum’s multisignature lending model to become a benchmark for regulated crypto credit markets, combining Swiss-grade compliance with Bitcoin-native transparency.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.