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Swiss Bank Sygnum to Launch Bitcoin-Backed Loan Platform With Multi-Sig Wallet Control
The offering, developed with non-custodial BTC lending startup Debifi, targets institutions and high-net worth borrowers who don't want to give up control of their assets.
Oct 24, 2025, 6:00 a.m.
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What to know:
- Sygnum Bank and Debifi are launching MultiSYG, a bank-backed loan platform allowing borrowers to retain partial control of their bitcoin.
- The offering, set to launch next year, aims to address concerns about rehypothecation in traditional finance.
- The platform uses a multi-signature wallet system, requiring three signatures for collateral movement, enhancing security and transparency for borrowers.
LUGANO, SWITZERLAND — Swiss digital asset bank Sygnum Bank has teamed up with bitcoin lending startup Debifi to launch what they say is the first bank-backed loan platform that doesn’t require borrowers to give up full control of their BTC.
The offering, dubbed MultiSYG and set to open in the first half of 2026, will target institutions and high-net-worth individuals who want access to bank-grade loan services but are wary of rehypothecation, a practice common in traditional finance where lenders reuse client collateral to back other deals.
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The move underscores the growing market for digital asset-backed financial products, which has evolved well beyond the early, and failed, crypto lenders like BlockFi and Celsius. Institutional players are increasingly demanding more sophisticated structures, especially those that avoid the single-point-of-failure risks that plagued centralized platforms in the last cycle.
"Borrowers shouldn’t need to trust a custodian blindly," said Debifi CEO Max Kei in a statement, pointing to years of demand for non-custodial lending options.
Most banks offering bitcoin-backed loans typically require full custody, cutting the borrower off from their assets until repayment. With MultiSYG, would-be borrowers can deposit BTC into a wallet controlled by five parties — Sygnum, the borrower and independent signers — with any collateral movement requiring three signatures. That model helps prevent rehypothecation and allows borrowers to verify the existence of their funds onchain throughout the life of the loan.
"[This] combines the best of both worlds — the ability to hold your own keys while accessing regulated banking products and white-glove service," said Pascal Eberle, Bitcoin@Sygnum and MultiSYG initiative lead at Sygnum Bank, in a statement. "Borrowers can benefit from bank-grade terms in pricing, drawdown flexibility and loan duration, while keeping cryptographic proof of their holdings and partial control of their BTC."
Read more: Arch Aims to Help Bitcoin Holders Slash U.S. Tax Bill With BTC Mining Investments
AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.
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