With President Donald Trump reaffirming plans for a US government crypto reserve, one major question remains: who can securely custody billions in digital assets against sophisticated state actors like North Korea’s Lazarus group?

Singapore and Swiss-based digital asset banking group Sygnum will add Deribit to its off-exchange custody platform, the firm announced on Wednesday. Deribit is the world's largest crypto derivatives exchange.

This integration enables traders to hold their assets in a regulated bank with institutional-grade security while conveniently accessing Deribit's deep liquidity.

Off-Exchange Custody Services

Sygnum was the first bank to launch off-exchange custody services for institutional traders with Sygnum Protect in early 2024.

Sygnum Protect’s integration with Deribit now leverages Fireblocks' innovative Off Exchange solution, enabling traders to mirror assets held in Sygnum’s custody to Deribit while accessing its broad instrument universe.

Essential For Security

«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. It is yet another reminder that separating crypto custody from exchange trading is essential for security,» Dominic Lohberger, Sygnum's chief product officer, said.

The need for counterparty risk mitigation and additional layers of security has become increasingly crucial in the institutional crypto trading space, where trading venues also act as custodians. To counter the threat from increasingly sophisticated cyber-attacks, close industry collaborations such as those between Sygnum, Deribit, and Fireblocks, which center on robust security, are fast becoming mission critical.

First Bank

«This integration provides institutional traders with both the capabilities and security assurances they require to trade any of Deribit’s leading products comfortably,» Luuk Strijers, CEO of Deribit, added.

Since Sygnum became the world’s first bank to launch its Sygnum Protect off-exchange custody services for institutional traders, it has attracted strong demand. Sygnum Protect enables flexible collateral options, including fiat, crypto, and traditional securities, with assets held off-balance sheet in bankruptcy-remote custody with Sygnum Bank.