TL;DR
- Sygnum Bank expands its custody platform to include Deribit, one of the leading crypto derivatives exchanges.
- The integration with Fireblocks “Off Exchange” allows traders to keep their assets in a regulated bank while accessing Deribit’s liquidity.
- The recent $1.4 billion Bybit hack highlights the growing need for secure and regulated custody solutions in the crypto industry.
Swiss crypto bank Sygnum has taken a major step in advancing the security and accessibility of digital asset trading by integrating its custody platform with Deribit, the largest options trading marketplace for cryptocurrencies. Leveraging Fireblocks “Off Exchange” technology, this innovative partnership enables traders to execute transactions on Deribit without the need to store their funds on the platform, significantly reducing counterparty risk and improving overall safety.
This move gains even greater importance in the wake of the Bybit cyberattack, in which hackers, allegedly linked to the North Korean Lazarus group, stole $1.4 billion in crypto assets. Incidents like this have exposed the vulnerabilities of funds held in centralized exchanges, underscoring the urgent need for implementing stronger security infrastructures within the sector.
How Fireblocks “Off Exchange” Works
The Fireblocks system allows institutional investors to “mirror” their assets on a trading platform without physically transferring them. This means that funds remain securely under the custody of Sygnum, a fully regulated bank operating in Switzerland, Luxembourg, and Singapore, while users can continue trading with full access to Deribit’s liquidity and financial products.
This new solution addresses one of the biggest concerns in the crypto market: security against hacks and fraud. By reducing direct exposure to trading platforms, investors can operate with greater confidence and enhanced protection from unforeseen events.
For Deribit, whose options market volatility reached $743 billion in 2024, this integration marks a significant step in attracting institutional investors who prioritize security while maintaining access to lucrative market opportunities. Luuk Strijers, CEO of Deribit, stated:
“This collaboration enables traders to operate with confidence, combining banking-grade security with the flexibility of the crypto market.”
Meanwhile, Michael Shaulov, CEO of Fireblocks, emphasized that this system accelerates institutional adoption by eliminating the need for custom-built solutions to integrate custody and trading operations seamlessly.
Amid increasing cyber threats and tightening regulations, this partnership between Sygnum, Deribit, and Fireblocks represents a major milestone in the evolution of crypto security and trading efficiency. It ensures that institutional investors can participate in the market with greater security, regulatory compliance, and confidence, reinforcing the industry’s long-term growth and stability.
