Sygnum and Debifi launched MultiSYG, a Bitcoin-backed lending service, on October 23. Borrowers receive separate wallets whose keys are distributed among the client, Sygnum Bank and independent institutional key holders. The companies say moving collateral requires valid signatures under each wallet’s rules, but their launch announcement does not specify the signing threshold, interest rate or loan-to-value limit.
The bank says collateral remains client-owned and is not rehypothecated, but its lending terms restrict transfers of locked collateral. Borrowers still face interest charges and margin requirements if collateral values change. Sygnum says Bitcoin accounts for more than 80% of collateral pledged by its clients, up from 63% in 2023; those figures do not describe the wider crypto lending market.
