Bybit is stepping up its game for institutional investors. The world’s second-largest crypto exchange by trading volume has announced a strategic partnership with Switzerland’s Sygnum Bank to deliver bank-grade, off-exchange custody for crypto assets.
The move brings together Bybit’s deep liquidity and wide product range with Sygnum’s reputation for secure, regulated digital asset banking. For institutions looking for safer ways to trade crypto, this could be a game-changer.
The partnership is centered around Sygnum Protect, a custody platform that lets institutions keep their assets off Bybit’s balance sheet while still trading spot and derivatives on the exchange.
Instead of shifting funds back and forth between the bank and the exchange, clients’ balances are mirrored on Bybit. Trading profits and losses are settled every eight hours, a setup designed to improve transparency and capital efficiency.
Sygnum is already the largest bank-operated off-exchange custody platform, supporting over half of global spot and derivatives trading volumes. Assets on the platform are protected under Swiss banking laws and secured by strict governance, independent audits, and advanced hardware and software controls.
Adding Bybit to its roster, which already includes Binance and Deribit, boosts Sygnum’s growing influence in institutional crypto services.
For Bybit, this deal is part of a larger push to strengthen its custody offerings. The exchange already works with Fireblocks, Copper, and Cactus. With Sygnum on board, it now offers regulated Swiss-level custody within its ecosystem.
“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. “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.”
Dominic Lohberger, Chief Product Officer at Sygnum, added, “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.”
Exchanges and banks are working closer than ever to make crypto safer for institutions. Bybit’s latest move shows that the demand for regulated, reliable custody is only getting stronger.
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