Swiss digital asset bank Sygnum has launched a new multi-signature Bitcoin-backed lending product called MultiSYG, designed to let holders secure liquidity without selling their assets or handing full control to a single custodian, Investing.com reported. Developed jointly with multi-signature loan specialist Debifi, the product places each client’s Bitcoin in an on-chain segregated wallet where keys are distributed among the client, Sygnum, and an independent key holder.
MultiSYG ensures recovery of lost keys and asset protection
The Bitcoin network rejects transactions that lack the required number of signatures. Under the MultiSYG structure, if a key is lost, recovery remains possible through the remaining key holders. Sygnum confirmed that client assets are kept off the bank’s balance sheet and receive bankruptcy-remote protection under Swiss banking law.
Sygnum and Debifi previously collaborated on an initial Bitcoin-backed lending product in 2025. Iulian Zanoaga, Sygnum’s deputy head of credit and lending, stated that “MultiSYG is a continuation of our regulated lending business.” He added that as more holders want to keep Bitcoin secure while accessing liquidity, adding decentralized multi-signature security is a natural next step.
Bitcoin Volatility Decline Drives Lombard Loan Demand
More than one in five Sygnum clients currently use Lombard loans, which are loans secured by assets. The proportion of Bitcoin within those pledged collateral assets grew from 63% in 2023 to more than 80%. Sygnum attributes this growth partly to a drop in Bitcoin’s one-year volatility, which fell from roughly 80% in 2021 to about 40%.
Recent high-profile security incidents have increased demand from holders seeking liquidity without selling assets or granting total control to a single entity. The MultiSYG rollout responds directly to these risk management preferences.
Frequently Asked Questions About MultiSYG
Who holds the keys in a MultiSYG loan?
Keys are distributed among three parties: the client, Sygnum Bank, and an independent key holder.
What legal protection applies to MultiSYG collateral?
Client assets are held off Sygnum’s balance sheet and protected under bankruptcy-remote structures governed by Swiss banking law.
How much has Bitcoin volatility changed since 2021?
Bitcoin’s one-year volatility dropped from approximately 80% in 2021 to about 40%, according to Sygnum data.
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