Crypto bank Sygnum has expanded its custody platform to include the world’s leading options exchange Deribit.

Sygnum and Deribit are now leveraging crypto custodian Fireblocks’ “Off Exchange” service, which allows traders to essentially “mirror” their assets held in custody on a trading platform.

Benefits for Traders

This will allow traders to hold their assets in a regulated bank while continuing to access the deep liquidity of Deribit, according to an announcement shared with CoinDesk on Wednesday.

Reducing Counterparty Risk

Traders received an unwelcome reminder of the dangers in keeping their assets on an exchange last month with the $1.4 billion hack of Bybit by North Korean Group Lazarus.

“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,” Sygnum’s chief product officer, Dominic Lohberger, said.

About Sygnum

Zurich-based Sygnum, which acquired a valuation of over $1 billion following a $58 million funding round in January, is licensed in its native Switzerland as well as Luxembourg and Singapore.

About Deribit

Deribit is among the world’s leading derivatives exchanges, with trading volume surpassing $1 trillion in 2024. Its options volume alone reached $743 billion.

FAQs

• Q: What does Sygnum’s expansion mean for traders?

  A: With Sygnum’s custody platform, traders can hold their assets in a regulated bank while still accessing the deep liquidity of Deribit.

• Q: What is Fireblocks’ “Off Exchange” service?

  A: Fireblocks’ “Off Exchange” service allows traders to essentially “mirror” their assets held in custody on a trading platform.

• Q: Why is reducing counterparty risk important for traders?

  A: Reducing counterparty risk is crucial for traders to protect their assets from cyber-attacks and other forms of risk.

Conclusion

Sygnum’s expansion to include Deribit on its custody platform marks a significant milestone in the development of the cryptocurrency market. By providing traders with a secure and regulated way to hold their assets, Sygnum is helping to reduce counterparty risk and promote greater stability in the market.

As the cryptocurrency market continues to evolve, it is crucial for traders to be aware of the risks involved and take steps to mitigate them. By leveraging Sygnum’s custody platform and Fireblocks’ “Off Exchange” service, traders can enjoy greater security and peace of mind, even as they access the deep liquidity of Deribit.