Story
Bitget Integrates Sygnum's Off-Exchange Custody for Institutional Clients
Summary
Cryptocurrency exchange Bitget has partnered with Swiss digital asset bank Sygnum, a move that pushes the share of global crypto trading volume using bank-held collateral to over 50%. The integration allows Bitget's institutional clients to hold assets off the exchange's balance sheet.
Cryptocurrency exchange Bitget has integrated with Swiss digital asset bank Sygnum to offer its institutional clients an off-exchange custody solution. According to Sygnum, this partnership elevates the share of global crypto spot and derivatives trading volume that clears against bank-held collateral to more than 50%, marking a significant milestone in institutional adoption of digital assets.
A New Standard for Counterparty Risk
Under the new arrangement, Bitget's institutional clients can trade on the exchange while their collateral remains secured in Sygnum's regulated custody in Switzerland. The assets are held off Bitget's balance sheet, where they are ring-fenced and bankruptcy-remote under Swiss banking law, which significantly mitigates counterparty risk.
A mirrored balance of these assets is maintained on the Bitget platform to facilitate trading in both spot and derivatives markets. This model, once considered a niche solution, is increasingly becoming a standard requirement for institutional traders seeking enhanced security for their digital asset holdings.
Market-Wide Shift to Bank-Grade Custody
AdThe integration highlights a broader industry trend toward bank-grade infrastructure for digital asset settlement. Gracy Chen, CEO of Bitget, stated that "as the market's largest venues converge on bank-grade custody, this is fast becoming the standard institutions expect." Bitget serves over 125 million users across more than 150 countries and is a major exchange by derivatives volume.
Sygnum's off-exchange platform, called Protect, has seen rapid growth since its launch in April 2024. The bank reported key metrics for the platform:
- Assets under custody grew more than 900% in 2025.
- Total assets surpassed $1 billion.
- Accepted collateral includes bitcoin, ether, stablecoins, and U.S. Treasuries.
"Off-exchange custody has become the settlement backbone of institutional digital asset trading," said Thomas Eichenberger, Deputy Group CEO of Sygnum Bank, underscoring the platform's growing role in the market.
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Bitget Integrates Sygnum Bank Custody, Pushing Partner Volume Over 50% of Global Market
Cryptocurrency exchange Bitget has integrated with Swiss digital asset bank Sygnum, allowing institutional clients to hold collateral off-exchange. The move brings the total trading volume on Sygnum's custody platform to over half of the global market, according to the bank.