Sygnum Enhances Crypto Custody with Deribit Partnership

In a significant move for the cryptocurrency banking sector, Sygnum has announced a strategic partnership with Deribit, a leading crypto derivatives exchange. This collaboration introduces Sygnum Protect, an off-exchange custody platform designed to provide institutional traders with enhanced security and efficiency.

What is Sygnum Protect?

Sygnum Protect is an innovative off-exchange custody solution that allows institutional traders to securely hold their digital assets while trading on Deribit. Officially launched on March 5, this integration marks a pivotal expansion of Sygnum’s offerings, enabling users to leverage Deribit’s extensive trading options and liquidity.

Benefits for Institutional Traders

According to Luuk Strijers, CEO of Deribit, this integration is set to revolutionize the trading experience for institutional clients. “This integration provides institutional traders with both the capabilities and security assurances they require to trade any of Deribit’s leading products comfortably,” he stated. The partnership aims to enhance the overall trading experience by combining Sygnum’s custody expertise with Deribit’s robust trading platform.

Collaboration with Fireblocks

The successful integration of Sygnum Protect with Deribit is made possible through a collaboration with Fireblocks, a renowned crypto infrastructure firm. Fireblocks has provided the necessary off-exchange solution that allows trades to mirror assets held in Sygnum’s custody directly to Deribit. This seamless integration is crucial for maintaining the integrity and security of assets during trading.

Mitigating Counterparty Risks

One of the standout features of this partnership is its ability to mitigate counterparty risks associated with trading on exchanges. As the cryptocurrency landscape evolves, so do the threats posed by sophisticated cybersecurity attacks. The integration of Sygnum Protect not only enhances security but also provides institutional traders with peace of mind, knowing their assets are safeguarded against potential vulnerabilities.

Why This Matters for the Crypto Industry

The partnership between Sygnum and Deribit represents a significant step forward in the crypto industry, particularly for institutional investors. As more traditional financial institutions enter the crypto space, the demand for secure and reliable custody solutions is at an all-time high. Sygnum Protect addresses this need by offering a robust platform that combines security with the flexibility required for active trading.

Future Implications

As the cryptocurrency market continues to mature, partnerships like the one between Sygnum and Deribit will play a crucial role in shaping the future of digital asset trading. By leveraging advanced technologies and innovative solutions, these firms are setting new standards for security and efficiency in the industry.

For more information on this groundbreaking partnership, you can read the original article here.