BTC Loans: Keep Your Coins and Your Sanity!

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Swiss digital asset bank Sygnum has partnered with Bitcoin 🧨 lending startup Debifi to launch MultiSYG, a bank-backed Bitcoin loan platform that lets borrowers retain shared control of their collateral. Because nothing says “trust” like a 3-of-5 multi-signature wallet. 🤝

The product, set to launch in the first half of 2026, targets institutions and high-net-worth individuals seeking secure, transparent lending without giving full custody of their assets. Because who wouldn’t want to almost lose their Bitcoin? 🎯

A Shift Away From Custodial Lending

With MultiSYG, users will be able to bypass the requirement of giving up custody of their BTC, which is usually common with traditional Bitcoin-backed loans. Borrowers will deposit Bitcoin into a 3-of-5 multi-signature escrow wallet controlled by Sygnum, the borrower, and independent signers. Because nothing says “safety” like needing three approvals to move your funds. 🧠

“Borrowers can benefit from bank-grade terms in pricing, drawdown flexibility, and loan duration, while keeping cryptographic proof of their holdings and partial control of their Bitcoin via multi-signature technology,” said Pascal Eberle, the head of the MultiSYG initiative at Sygnum. Because nothing says “trust” like a tech wizard with a PhD in paranoia. 🧙‍♂️

Any movement of funds requires three approvals, allowing borrowers to verify their holdings on-chain throughout the loan’s duration. Debifi CEO Max Kei said the model removes the need for blind trust in custodians while maintaining regulatory oversight. Because regulators are definitely the ones you want handling your Bitcoin. 🧩

Sygnum claimed in a post that MultiSYG combines the security of self-custody with the structure and reliability of traditional banking. Because what could possibly go wrong? 🤡

Demand for Safer Bitcoin Lending

After the collapse of centralized lenders like BlockFi and Celsius, demand for non-custodial and verifiable loan structures has increased. MultiSYG seeks to meet that demand while ensuring assets cannot be reused or rehypothecated. Because who doesn’t want their Bitcoin to be a pawn in a game of chess? 🏰

Sygnum said that MultiSYG is part of its ongoing Bitcoin@Sygnum initiative to develop regulated Bitcoin products and infrastructure. The bank plans to make the service available globally upon launch. Because nothing says “global” like a Swiss bank with a side of existential dread. 🇨🇭

Broader Expansion of Sygnum’s Services

The Debefi partnership follows other offerings such as the BTC Alpha Fund, which uses arbitrage strategies to generate yield in Bitcoin, and the bank’s expansion of asset management services into Germany and Liechtenstein. Because nothing says “financial innovation” like moving assets across borders with the efficiency of a bureaucratic snail. 🐌

With regulatory presence in Switzerland, Singapore, Abu Dhabi, and Luxembourg, Sygnum’s footprints in the crypto space continue to go deeper. The firm recently debuted Sygnum Validators, enabling non-custodial staking for select blockchains from Abu Dhabi Global Market (ADGM). Because who doesn’t want to stake their Bitcoin in a place where “regulatory oversight” is a euphemism for “don’t get too comfortable”? 🏦

According to the reports, the first validator launch will support the Solana 🧨, a massive push for the Layer 1 solution. SOL holders can now stake their assets and earn rewards. Because nothing says “massive” like a blockchain that’s already 105 billion dollars in value. 💸

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2025-10-24 17:41