Zurich-based digital asset bank Sygnum has added Bitcoin options and derivatives platform Deribit to its off-exchange crypto custody platform.
Amid growing cyberattacks on exchanges, Deribit has sought options that prevent its assets from hacks. To weather this trend, the prominent Bitcoin and crypto options platform has partnered with Sygnum to enjoy asset off-exchange solutions.
On Wednesday, Sygnum, the world’s first digital asset bank, announced Deribit’s integration into its off-exchange custody platform, Sygnum Protect. The platform will allow users of the leading derivatives platform to store their assets on the off-exchange solution while receiving the same liquidity on Deribit as though their funds were there.
Deribit Embraces Off-Exchange Solutions
Recall that on February 21, North Korea’s notorious hackers, Lazarus Group, hacked prominent crypto exchange Bybit for $1.46 billion. The sophisticated exploiters gained access to the exchange’s cold wallet after tricking the signers of the multi-signature address into giving them full authority. The attackers have since laundered all the stolen funds.
To avert a similar occurrence for Deribit, the options trading platform has forged an alliance with Sygnum to provide institutional-grade custody solutions. The duo will leverage Fireblock’s Off-Exchange technology to mirror funds custodied with Sygnum on Deribit.
Meanwhile, the new custody initiative would decimate counterparty risks while trading on Deribit and ensure funds are safe. Notably, Sygnum is the first digital bank to launch an off-exchange solution for institutional traders, debuting the service in 2024.
Innovation to Provide Extra Security
Luuk Strijers, Deribit’s CEO, lauded the recent collaboration, which he said brings an extra layer of security and transparency for its institutional traders. He added that Sygnum Protect provides institutional-grade protection and assurance to explore the platform’s derivative products.
The Zurich-based digital platform recently raised $58 million in a funding round in January, taking its valuation to $1 billion. In October, Sygnum predicted that Solana would contest Ethereum’s dominance amid growing institutional adoption.
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