tl;dr
Swiss digital asset bank Sygnum partners with Debifi to launch MultiSYG, a revolutionary BTC lending platform that lets borrowers retain control of their assets while accessing institutional-grade services, tackling risks of rehypothecation in crypto lending.
**Swiss Digital Asset Bank Sygnum Partners with Debifi to Launch Groundbreaking BTC Lending Platform**
*LUGANO, SWITZERLAND —* In a move poised to redefine digital asset lending, Swiss digital asset bank Sygnum Bank has partnered with bitcoin lending startup Debifi to launch *MultiSYG*, a bank-backed loan platform that allows borrowers to retain partial control of their BTC without sacrificing access to institutional-grade financial services. Set to launch in the first half of 2026, the platform targets institutions and high-net-worth individuals seeking secure, transparent alternatives to traditional crypto lending models.
The initiative addresses a critical pain point in the industry: the risks associated with rehypothecation, a practice where lenders reuse client collateral to back other transactions. This practice, common in traditional finance, has historically exposed borrowers to systemic risks, particularly in the volatile crypto space. By contrast, *MultiSYG* introduces a novel approach that combines the security of regulated banking with the autonomy of self-custody.
**A New Era for BTC Lending**
Most banks offering bitcoin-backed loans require borrowers to surrender full custody of their assets, effectively locking them out until repayment. *MultiSYG* disrupts this model by enabling borrowers to deposit BTC into a multi-signature wallet governed by five parties: Sygnum Bank, the borrower, and three independent signers. Any movement of collateral requires three signatures, ensuring transparency and preventing unauthorized use. This structure not only mitigates rehypothecation risks but also allows borrowers to verify their funds onchain throughout the loan’s duration.
“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 lead for the MultiSYG initiative at Sygnum Bank. Borrowers gain bank-grade terms, flexible drawdowns, and extended loan durations while maintaining cryptographic proof of their holdings.
**Learning from Past Failures**
The platform emerges amid a maturing market for digital asset-backed financial products, which has evolved beyond the collapsed crypto lenders of the past, such as BlockFi and Celsius. Institutional demand is now driving innovation, with a focus on structures that avoid the single-point-of-failure risks that plagued centralized platforms.
Debifi CEO Max Kei emphasized the growing demand for non-custodial solutions, stating, “Borrowers shouldn’t need to trust a custodian blindly.” The partnership between Sygnum and Debifi reflects a broader industry shift toward decentralized yet regulated financial tools that prioritize transparency and user control.
As the crypto sector continues to intersect with traditional finance, *MultiSYG* signals a pivotal step toward a future where digital assets can be leveraged as collateral without compromising security or autonomy. With its innovative approach, the platform aims to set a new standard for institutional-grade crypto lending.