- Sygnum Protect off-exchange custody removes crypto market entry barriers for TradFi via off-balance sheet treatment, bank-grade security and availability of US treasuries as collateral
- Crypto exchanges on the platform are ramping up trading volumes due to lower counterparty risks and the ability to continue trading in periods of peak market volatility
- Unlike non-bank off-exchange platforms, Sygnum Protect accepts yield generating US treasuries that provide margins after costs, as well as reduced counterparty risks
- Sygnum Protect delivered 900% asset growth in 2025, with assets on the platform surpassing USD 1 billion
Zurich, March 18, 2026 8:00 AM CET — Sygnum, a global digital asset banking group, has seen assets surge on its Protect off-exchange custody platform as institutional TradFi, attracted by crypto market volatility, join major global crypto exchanges on the platform. Trading volumes by crypto exchanges, hedge funds, market makers and prime brokers have ramped up due to heightened counterparty risk awareness and the ability to continue trading in times of peak market stress. Fueled by these trends, and supported by the continued confidence in secure Swiss regulated infrastructure, assets on the Sygnum Protect platform surpassed USD 1 billion.
TradFi traders attracted by crypto market volatility opportunities
Technology-led TradFi market makers are increasingly entering the crypto market, attracted by its 24-7 trading hours, large selection of trading venues, and market volatility that is often higher than traditional assets. Their operational setup enables them to quickly expand their trading activities into this new sector, capturing new arbitrage revenue streams and providing enhanced services for larger clients. Barriers to access these new opportunities are removed due to Protect’s ability to hold assets off balance sheet in secure, bank grade custody. Yield bearing collateral like US Treasuries is a unique additional bonus.
Surging assets under custody
In 2025, Sygnum Protect collateral volumes surged over 900% YoY. This strong momentum has continued in 2026, fueled by the continued need for regulated counterparty-risk management and heightened awareness of evolving security threats. Sygnum Protect is one of the largest bank-operated off-exchange custody platforms, with exchange members representing over 50% of global spot and derivatives exchange volumes – a market valued at over half a trillion dollars annually(i). Protect’s strong pipeline of new exchanges highlights the continued confidence in Switzerland’s secure, regulated banking infrastructure.
Sygnum partnered with Binance to launch Sygnum Protect in April 2024, with the world’s biggest exchange being followed by Deribit in March and Bybit in September 2025. Laser Digital, a full-service digital asset firm, is an active user on the platform.
Flexible, yield bearing collateral
Unlike non-bank off-exchange custody solutions, Sygnum Protect accepts traditional assets like US treasuries as collateral in addition to stablecoins and digital assets. These stable, liquid yield assets, which form the majority of Protect allocations, provide dual benefits for institutional traders. Their yield can deliver margin after covering costs – and help mitigate direct exchange counterparty risks, such as governance and control failures, IT security breaches or defaults – both at the same time.
Protect clients can also remain active in fast-moving markets via the bank’s multi-asset and multi-chain capabilities. Collateral can be dynamically managed via fiat rails in all major currencies, as well as via security transfers and major stablecoins (USDT, USDC), enabling assets to be mobilised quickly without compromising security.
“Investor flight-to-trust is gathering pace as market volatility, platform failures and security incidents from previous cycles raise awareness of the critical importance of where their assets are held, and how their risks are managed”, says Dominic Lohberger, Sygnum Chief Product Officer. “Sygnum Protect is strengthening industry resilience and empowering institutions, crypto brokers and market makers to securely access and freely explore the digital asset universe. We look forward to further expanding our collateral options and welcoming new exchanges to the Sygnum Protect platform in 2026.”
“In volatile market conditions, secure, off-exchange custody is an essential control measure against counterparty risk,” says Alain Passini, Head of Risk at Wintermute. “This infrastructure layer future-proofs our operations and enhances overall resilience. The ability to generate yield on collateral helps offset costs, making it a net positive for our bottom line. As a result, Sygnum Protect allows us to bridge capital efficiency and risk mitigation – a competitive advantage in today’s markets.”
Structural industry changes driving off-exchange custody adoption
Protect’s growth is propelled by structural changes that are shaping the global industry. The segregation of trading functions, flexible collateral management and robust risk management – all standard practices in traditional finance – are fast becoming best-practice in digital asset markets. As digital asset markets mature, regulated banking partners like Sygnum are playing a new, expanded role in shaping how institutions manage liquidity, margin, and counterparty exposure. The ongoing professionalisation of crypto trading via off-exchange custody is now a must-have to ensure operational resilience during times of peak market stress.
All client collateral is held off the bank’s balance sheet in segregated, bankruptcy-remote accounts with the balance mirrored and available for trading on the exchange. Additional peace of mind is delivered through Sygnum’s robust custody infrastructure and expert security team. Together, they safeguard client assets by integrating multiple security layers to ensure maximum protection and mitigate single points of security failure.
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.
Sygnum 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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