Sygnum Bank, a top digital asset banking firm, has announced further expansion of its platform for off-exchange custody. As per Sygnum Bank, it is broadening the off-exchange custody forum thereof to incorporate Deribit, the biggest exchange for crypto derivatives. The platform took to its official X account to provide the details of this expansion.
Sygnum Bank Widens Off-Exchange Custody Forum, Adding Derivatives Exchange Deribit
By integrating Deribit, Sygnum Bank aims to improve accessibility and security for the institutional traders. This expansion permits these traders to leverage the deep liquidity of Deribit while guaranteeing the safe custody of their assets. In this respect, Sygnum Bank offers Sygnum Protect to minimize counterparty risk by isolating the exchange trading from asset custody. The decision to incorporate Deribit takes place at a point when more people are aware of the resurgence in the counterparty risk.
Dominic Lohberger, the Chief Product Officer of Sygnum, commented on this integration, stressing the significance of secure crypto trading. As per the executive, awareness about counterparty risk occurs in cycles, while the recent significant cyber-attack has led to one of the biggest exchange derisking trends since FTX. It reportedly serves as another reminder that isolating crypto exchange from custody is crucial to maintaining security. Based on this, Sygnum Protect also operates as a necessary factor to fortify the robustness of the crypto market.
Fully backed by Off-Exchange Solution of Fireblocks
The Sygnum Protect’s expansion to add Deribit is reportedly backed by the Off-Exchange solution of Fireblocks. It is a cutting-edge system for automated settlement as well as collateral management. This technology enables seamless transfers without the requirement for modified integration, expediting institutional adoption of authorized solutions for bank custody. Fireblocks CEO Michael Shaulov, pointed toward the importance of the Deribit integration. The executive added that the move lets custodians and exchanges leverage the platform’s standardized integration while requiring no custom development. This boosts institutional adoption for security asset holding through bank custody.
Enhancing Risk Management, Transparency, and Security
According to Sygnum Bank, Deribit’s integration solidifies its custody forum, aligning with the wider market trends of risk management, transparency, and security. With the gradual maturity of the digital asset market, authorized custody platforms like Sygnum Protect are getting substantial traction. Moreover, they are poised to significantly contribute to promoting the institutional confidence as well as long-term growth across the crypto landscape.
