Sygnum Bank Sees Surging Demand for Binance Off-Exchange Custody

Sygnum Bank Sees Surging Demand for Binance Off-Exchange Custody
  • Sygnum Bank sees accelerating adoption for its Sygnum Protect off-exchange custody platform for institutional traders on Binance
  • Sygnum Protect empowers hedge funds, prime brokers, liquidity providers and other institutional market participants to pledge assets held as collateral with Sygnum Bank to Binance, and receive the equivalent amount as a trading balance on the exchange
  • Service requires no tech integrations and provides convenient access to a broad range of collateral including T-Bills, USD and stablecoins
  • Sygnum has partnered with Binance to offer the Sygnum Protect solution since April 2024

Sygnum, a global digital asset banking group, is experiencing strong institutional demand for Sygnum Protect, its off-exchange custody solution integrated with Binance, the world’s largest cryptocurrency exchange.

Sygnum’s integration with Binance, which went live in April 2024, enables institutional traders including hedge funds, market makers and prime brokers, to access the exchange’s broad trading universe and deep liquidity – while maintaining their assets in Sygnum’s institutional-grade custody. The respective assets serve as collateral and are pledged to Binance in return for USD-denominated trading balance which can be used for margin and derivatives trading activities.

Sygnum Protect is convenient and fast to set up for onboarded Sygnum clients because no tech integrations are required, with traders benefiting from a flexible and broad range of stable, liquid and yield-generating collateral like T-Bills, USD and stablecoins. Most recently, Sygnum and Binance also started testing the use of Bitcoin as collateral for selected clients.

The bank’s “secure by design” custody solution safeguards against cyber hacks and fraud by integrating layers of software and hardware controls, as well as governance and external audits, to maximise security and remove single points of failure.

Sygnum’s bank-grade security, combined with its ability to hold client assets bankruptcy remote and off-balance sheet, significantly mitigates counterparty risk – a growing priority for institutional participants in digital asset markets following recent high-profile security incidents.

Catherine Chen, Binance’s Head of VIP & Institutional says “Demand for institutional-grade solutions in crypto continues to accelerate and Binance was the first digital asset exchange to initiate and successfully execute a triparty solution, allowing institutional clients to better manage risk and further scale their activity. More institutional clients are looking for secure ways to manage their assets as they increase adoption, and our industry-first collaboration with Sygnum reflects Binance’s commitment to providing the flexibility and security that institutional clients demand in today’s evolving market.”

“The combination of Sygnum’s banking license and Binance’s liquidity creates a unique solution that aligns with the current market dynamics in institutional crypto trading, where demand for off-exchange solutions with regulated custodians is growing rapidly. In addition to lower security and counterparty risks, institutional traders receive the “double benefit” of the yield generated by collateral like T-Bills being higher than the overall costs of the service,” says Dominic Lohberger, Sygnum’s Chief Product Officer.

Sygnum Protect multi-exchange coverage is being continually expanded to cater for the rising demand and strong onboarding pipeline for the service. This surge in demand comes as more institutions recognize the importance of segregating trading and custody functions — a standard practice in traditional finance that is increasingly being applied to digital asset markets.

About Sygnum
Sygnum is a global digital asset banking group, founded on Swiss and Singapore heritage. We empower professional and institutional investors, banks, corporates and DLT foundations to invest in digital assets with complete trust. Our team enables this through our institutional-grade security, expert personal service and portfolio of regulated digital asset banking, asset management, tokenization and B2B services.

In Switzerland, Sygnum holds a banking license and has CMS and Major Payment Institution licences in Singapore. The group is also regulated in the established global financial hubs of Abu Dhabi and Luxembourg and is registered in Liechtenstein.

We believe that the future has heritage. Our crypto-native team of banking, investment and digital asset technology professionals are building a trusted gateway between the traditional and digital asset economies that we call Future Finance. To learn more about how Sygnum’s mission and values are shaping this digital asset ecosystem, please visit sygnum.com and follow us on LinkedIn and X.

About Binance
Binance is a leading global blockchain ecosystem behind the world’s largest cryptocurrency exchange by trading volume and registered users. Binance is trusted by more than 270 million people in 100+ countries for its industry-leading security, transparency, trading engine speed, protections for investors, and unmatched portfolio of digital asset products and offerings from trading and finance to education, research, social good, payments, institutional services, and Web3 features. Binance is devoted to building an inclusive crypto ecosystem to increase the freedom of money and financial access for people around the world with crypto as the fundamental means.

Binance VIP & Institutional empowers institutions and private wealth clients with robust asset management infrastructure, personalized VIP services and advanced end-to-end institutional trading tools on the world’s largest cryptocurrency exchange by trading volume and registered users. With deep financial services experience in both traditional and crypto markets, its global team of trusted experts provides VIP & Institutional clients with the support they need to confidently capitalize on the industry’s deepest liquidity and tightest markets. For more information, visit: https://www.binanceinstitutional.com

Media Contact:
Dominic Castley, Chief Marketing Officer
[email protected]

Sygnum Bank AG,
Uetlibergstrasse 134a,
8045 Zurich, Switzerland

Disclaimer: The information in this publication pertaining to Sygnum Bank AG (“Sygnum”) is for general information purposes only, as per date of publication, and should not be considered exhaustive. This publication does not consider the financial situation of any natural or legal person, nor does it provide any tax, legal or investment advice. This publication does not constitute any advice or recommendation, an offer or invitation by or on behalf of Sygnum to purchase or sell any assets. No elements of precontractual or contractual relationship are intended. While the information is believed to be from accurate and reliable sources, Sygnum makes no representation or warranties, expressed or implied, as to the accuracy of the information. Sygnum expressly disclaims any and all liability that may be based on such information, omissions, or errors thereof. Any statements contained in this publication attributed to a third party represent Sygnum‘s interpretation of the data, information and/or opinions provided by that third party either publicly or through a subscription service, and such use and interpretation have not been reviewed by the third party. Sygnum reserves the right to amend or replace the information, in part or entirely, at any time, and without any obligation to notify the recipient of such amendment / replacement or to provide the recipient with access to the information. Simultaneously, there is no obligation of Sygnum to inform recipients of information, if before provided information later becomes outdated, inaccurate or obsolete, unless otherwise provided by applicable law. The information provided is not intended for use by or distributed to any individual or legal entity in any jurisdiction or country where such distribution, publication or use would be contrary to the law or regulatory provisions or in which Sygnum does not hold the necessary registration, approval authorisation or license. Except as otherwise provided by Sygnum, it is not allowed to modify, copy, distribute or reproduce, display, license, or otherwise use any content for commercial purposes.

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The information in this publication pertaining to Sygnum Bank AG (“Sygnum”) is for general information purposes only, as per date of publication, and should not be considered exhaustive. This publication does not consider the financial situation of any natural or legal person, nor does it provide any tax, legal or investment advice. This publication does not constitute any advice or recommendation, an offer or invitation by or on behalf of Sygnum to purchase or sell any assets. No elements of precontractual or contractual relationship are intended. While the information is believed to be from accurate and reliable sources, Sygnum makes no representation or warranties, expressed or implied, as to the accuracy of the information. Sygnum expressly disclaims any and all liability that may be based on such information, omissions, or errors thereof. Any statements contained in this publication attributed to a third party represent Sygnum‘s interpretation of the data, information and/or opinions provided by that third party either publicly or through a subscription service, and such use and interpretation have not been reviewed by the third party. Sygnum reserves the right to amend or replace the information, in part or entirely, at any time, and without any obligation to notify the recipient of such amendment / replacement or to provide the recipient with access to the information. Simultaneously, there is no obligation of Sygnum to inform recipients of information, if before provided information later becomes outdated, inaccurate or obsolete, unless otherwise provided by applicable law. The information provided is not intended for use by or distributed to any individual or legal entity in any jurisdiction or country where such distribution, publication or use would be contrary to the law or regulatory provisions or in which Sygnum does not hold the necessary registration, approval authorization or license. Except as otherwise provided by Sygnum, it is not allowed to modify, copy, distribute or reproduce, display, license, or otherwise use any content for commercial purposes.

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