Crypto Options Exchange Deribit to Use Sygnum's Custody Service

Sygnum Bank, a leading cryptocurrency bank, has announced that it is expanding its custody platform to include the world-renowned options exchange Deribit. This strategic partnership will enable traders to leverage the regulated banking services of Sygnum while still accessing the unparalleled liquidity of Deribit's platform.

As part of this collaboration, Sygnum and Deribit are utilizing Fireblocks' "Off Exchange" service, a cutting-edge solution that allows traders to mirror their assets held in custody on a trading platform. This innovative approach enables traders to maintain control over their assets while minimizing counterparty risk, ensuring an additional layer of security for their investments.

The recent $1.4 billion hack of Bybit by the notorious North Korean group Lazarus serves as a stark reminder of the importance of asset safety and security in the crypto industry. "Counterparty risk awareness in crypto comes in cycles, and the recent major cyber-attack has triggered one of the largest waves of exchange derisking since FTX," said Dominic Lohberger, Sygnum's chief product officer. This sentiment is echoed by Deribit's commitment to robust security measures and regulatory compliance.

Sygnum, a Swiss-based bank with operations in Luxembourg and Singapore, has seen significant growth following its $58 million funding round in January. With an acquisition valuation of over $1 billion, Sygnum has established itself as a major player in the cryptocurrency banking landscape.

Deribit, on the other hand, has cemented its position as one of the world's leading derivatives exchanges. In 2024, trading volume surpassed $1 trillion, with options volume reaching an impressive $743 billion. This partnership between Sygnum and Deribit further solidifies both parties' commitment to providing secure, regulated, and innovative solutions for crypto traders.

The integration of Sygnum's custody service with Deribit's platform is expected to provide traders with unparalleled flexibility and security, allowing them to access the deep liquidity of Deribit while maintaining control over their assets. As the crypto industry continues to evolve, this strategic partnership between Sygnum and Deribit marks an important step forward in promoting asset safety and security.

By leveraging Fireblocks' "Off Exchange" service, traders can now benefit from the best of both worlds – the liquidity and depth of Deribit's platform, combined with the peace of mind that comes with having their assets safely held in a regulated bank. This marks an exciting new chapter for Sygnum and Deribit as they continue to shape the future of cryptocurrency trading.