- Sygnum Bank’s MultiSYG allows borrowers to retain control of Bitcoin collateral through multisignature tech.
- New Bitcoin-backed loans with MultiSYG offer greater transparency and security for Sygnum clients.
- MultiSYG provides flexible loan terms, ensuring Bitcoin investors maintain control and prevent rehypothecation.
Sygnum Bank is a digital asset bank, based in Switzerland, which has collaborated with the Bitcoin-supported lending platform Debifi to introduce a new lending product. This is labeled as MultiSYG and enables borrowers to retain control of their collateralized Bitcoin. It applies a multisignature concept to offer increased safety and adaptability in loans supported by Bitcoin.
MultiSYG, in comparison to a conventional loan, allows Sygnum Bank clients to borrow fiat funds secured by Bitcoin without surrendering control of their collateral. The multisignature system must have three out of five key holders in order to authorize any transaction. This will make borrowers more open and allow them to see and validate their holdings of Bitcoin on the blockchain during the loan.
Sygnum Bank Empowers Investors with MultiSYG Bitcoin Loan Solution
Through this new system, Sygnum Bank will also not have to relinquish complete authority of Bitcoin in order to obtain a loan. Customers remain in partial control of their collateral and prevent rehypothecation, a frequent problem with traditional Bitcoin-backed loans. This will make the product appealing to those Bitcoin investors who seek greater control of their holdings.
Pascal Eberle, the leader of the MultiSYG project in Sygnum, identified the main benefits of the product. The borrowers have the advantage of flexible loan terms, which include favorable charges and longer loan terms. Multisignature technology is used to ensure that clients have cryptographic evidence of their holdings throughout the loan term.
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Riot and Cleanspark Secure $100M with Bitcoin Collateral
Bitcoin-secured loans are also finding a comeback this year. In April, a Bitcoin mining company, Riot Platforms, took advantage of its stockpile as a form of security to borrow a $100 million credit facility with Coinbase Prime, the credit division of Coinbase.
Another Coinbase Prime loan, this time to Cleanspark, another mining company, had a loan value of $100 million, which was issued in September. Later that month, Cleanspark secured an additional loan of 100 million dollars in the form of Bitcoin treasury from Two Prime.
As per the Bloomberg report, in May, Cantor Fitzgerald provided Bitcoin-backed loans to FalconX and Maple Finance. FalconX confirmed securing a facility worth over $100 million as part of a larger credit arrangement, while Maple Finance completed the first tranche of its deal with Cantor.
The product will be introduced in the first half of 2026 and will be open to every client of Sygnum Bank. The collaboration with Debifi is another milestone in Bitcoin-backed lending and a way to merge the multisignature technology that is highly secure with the flexibility that borrowers require.
Sygnum MultiSYG provides Bitcoin investors with a novel solution to borrowing loans without losing control of their assets. With multisignature technology, the product offers an increased level of security and transparency to clients. This strategy will become a new standard in Bitcoin-secured lending, providing both a flexible and secure solution.
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