Bybit, the world’s second-largest cryptocurrency exchange by trading volume, has teamed up with Swiss digital asset bank Sygnum to give institutional clients access to regulated, off-exchange custody via the Sygnum Protect platform. The tie-up lets institutions hold assets off-balance sheet at Sygnum Bank while continuing to trade spot and derivatives on Bybit, with balances mirrored on the exchange and trading P&L settled automatically every eight hours.
A New Standard for Institutional Security
The integration plugs Bybit into Sygnum Protect, the bank-operated off-exchange custody network that now covers exchanges representing more than half of global annual spot and derivatives volumes. Sygnum Protect layers hardware-and-software controls, strict governance, independent audits and the legal protection of bankruptcy-remote custody under Swiss banking law, aiming to reassure institutions that assets remain safe even during market stress.
“Crypto and stablecoin infrastructure is evolving, and managing counterparty risks is essential for further institutional adoption,” said Yoyee Wang, Head of Bybit’s Business-to-Business Unit (BBU). “Our partnership with Sygnum Bank not only gives clients access to Bybit’s industry-leading products and liquidity, but also ensures their assets are safeguarded with the highest standards of Swiss banking. Together, we are building a secure and transparent foundation for institutions to trade with confidence.”
Under the arrangement, institutional customers can maintain custody at Sygnum while trading on Bybit. Asset balances held at the bank are instantly mirrored on the exchange, so traders keep access to Bybit’s liquidity and product suite without taking those assets onto the exchange’s balance sheet. The automatic eight-hour P&L settlement window is designed to support capital efficiency and give operators clearer operational visibility. For institutional desks that prioritize regulatory certainty and segregation of assets, those are meaningful comforts.
Expanding Custody Options
Bybit already works with a roster of custody partners, including Fireblocks, Copper and Cactus, to give clients flexibility in how they protect assets. Adding Sygnum brings a regulated, bank-grade option into that ecosystem and positions Bybit to better meet demand from institutional players who want bank-backed custody without sacrificing trading access. Sygnum’s Protect network has grown quickly since its initial integrations, and Bybit’s inclusion marks another step in the platform’s expansion.
“Sygnum Bank remains committed to working with leading exchanges to enhance the resilience of the crypto industry and empower institutions to trade with peace of mind,” said Dominic Lohberger, Sygnum Chief Product Officer. “The rapid adoption of Sygnum Protect by institutional clients trading on Binance, Deribit, and now Bybit, demonstrates the urgent need for bank-grade, off-balance sheet custody solutions. We are delighted to welcome Bybit to our growing network of integrated exchanges.”
Sygnum says the next phase of the Protect roadmap will include automated collateral transfers between exchanges to further boost capital efficiency and asset allocation for institutional users. For Bybit, the deal reinforces its push to be a go-to venue for institutional flow by coupling deep liquidity and product breadth with enhanced custody choices. As institutional crypto adoption matures, arrangements that combine regulated custody with seamless trading are likely to become standard practice rather than the exception.
