Lugano, Switzerland — Swiss digital asset financial institution Sygnum Financial institution companions with Bitcoin BTC$111,236.69 Lending startup Debifi is launching the primary bank-backed lending platform that doesn’t require debtors to relinquish full management of their BTC.
The service, dubbed MultiSYG, is anticipated to launch within the first half of 2026 and is focused at establishments and high-net-worth people who need entry to bank-grade mortgage providers however are cautious of rehypothecation, a typical observe in conventional finance the place lenders reuse buyer collateral as backing for different transactions.
The transfer highlights the rising marketplace for digital asset-backed monetary merchandise that has advanced far past early failed crypto lenders like BlockFi and Celsius. Institutional buyers are more and more looking for extra refined constructions, particularly those who keep away from the only level of failure dangers that plagued centralized platforms within the final cycle.
“Debtors do not should blindly belief their custodians,” Debifi CEO Max Kay stated in an announcement, pointing to the long-standing demand for non-custodial financing choices.
Most banks providing Bitcoin-backed loans sometimes require full custody, severing the borrower’s belongings till compensation. MultiSYG permits those that wish to borrow to deposit their BTC right into a pockets managed by 5 events: Sygnum, the borrower, and an unbiased signer, and three signatures are required to maneuver the collateral. This mannequin helps stop re-hypothecation and permits the borrower to confirm the existence of funds on-chain all through the lifetime of the mortgage.
“[It]combines one of the best of each worlds: a regulated banking product and the power to carry your individual keys whereas accessing white-glove providers,” Pascal Eberle, head of Bitcoin@Sygnum and Multi-SYG Initiatives at Sygnum Financial institution, stated in an announcement. “Debtors can profit from bank-grade phrases in pricing, drawdown flexibility, and mortgage time period whereas sustaining crypto proof of their holdings and partial management of their BTC.”
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