Synopsis: Swiss bank Sygnum and bitcoin lender Debifi are launching MultiSYG, a BTC-backed loan platform using a 3-of-5 multi-signature system for secure, non-custodial, institutional crypto borrowing.
Swiss digital asset bank Sygnum is pushing deeper into crypto finance by joining hands with bitcoin lending startup Debifi to create MultiSYG, a new BTC-backed loan platform that gives borrowers more control over their digital assets.
Set to go live in the first half of 2026, MultiSYG represents a first in banking circles a platform that allows bitcoin holders to borrow without surrendering full custody of their coins. For me, that makes this initiative not just innovative but overdue in a world where transparency and trust are everything.
A Safer Model for Bitcoin Lending
The MultiSYG platform uses a multi-signature wallet system, requiring three approvals out of five to move any collateral. These five signers include Sygnum, Debifi, the borrower, and two independent entities acting as neutral verifiers. This setup ensures no single party can act unilaterally a firm response to the risks that sank earlier lenders like Celsius and BlockFi.
By introducing this 3-of-5 wallet design, Sygnum aims to solve a long-standing issue in crypto loans: rehypothecation, the practice of reusing collateral behind the borrower’s back. It’s a cautious yet forward-looking approach that blends Swiss regulation with blockchain auditability.
Borrowers can now take loans in fiat currencies or stablecoins while seeing their BTC stay visible and verifiable on-chain. Each user holds a signing key, retaining partial control. That feels reassuring, especially after so many custodial platforms misused customer assets in past cycles.
Designed for Institutions and High-Net-Worth Investors
MultiSYG mainly targets institutions and high-net-worth individuals who prefer secure, non-custodial borrowing. These groups often hesitate to engage with centralized lenders due to counterparty risk. With Sygnum’s FINMA-regulated backing, however, borrowers can expect compliance-grade services paired with a proven crypto ethos “not your keys, not your coins.”
Loan-to-value ratios may range between 30% and 50%, depending on BTC volatility. Borrowers could access millions in liquidity while keeping cryptographic proof that their assets remain untouched. According to Debifi CEO Max Kei, “Borrowers shouldn’t need to trust a custodian blindly.” That sentiment echoes what many in crypto have felt for years.
For anyone watching global finance evolve, this partnership highlights how traditional banks are finally meeting crypto expectations halfway. It’s not flashy but foundational and it signals that bitcoin-backed credit is entering a more mature, risk-aware phase.
Broader Impact on the Crypto Market
Sygnum’s move also has broader implications. Institutional adoption of BTC as collateral could accelerate, deepening liquidity and stabilizing market sentiment. It might even push competitors like Ledn or Nexo to upgrade to similar non-custodial frameworks.
If successful, MultiSYG could raise standards across crypto lending and demonstrate that financial innovation doesn’t have to sacrifice user control. Bitcoin’s reputation as “digital gold” strengthens when secure infrastructure like this takes shape under regulated supervision.
For now, access remains limited to professional and wealthy investors. Yet retail spillover seems inevitable. Platforms might eventually adopt similar multi-sig designs for smaller users by 2027, opening safer doors for individual borrowers.
In an era that still remembers failed exchanges and frozen withdrawals, seeing a Swiss-regulated bank take this route feels refreshing. It blends crypto ideals with traditional trust a welcome change in a sector still earning back credibility.
Written By Fazal Ul Vahab C H