Sygnum Bank and Debifi launch MultiSYG, the first bank-backed BTC lending service allowing borrowers to retain key control of their collateral.
Sygnum Bank and Debifi have announced a significant partnership. The firms have today launched MultiSYG, a revolutionary Bitcoin lending solution. MultiSYG is the first service from a regulated bank for offering loans. Therefore, borrowers are able to borrow fiat loans using verifiable bitcoin collateral. Crucially, this means that they can maintain distributed control over keys over the lifetime of the loan.
Multi-Signature Technology Preserves Borrower Control
The product is scheduled for 2026, in the first half of the year. Furthermore, it is the first multi-signature solution of Bitcoin lending by a regulated bank. MultiSYG gives the borrowers effective share control of his or her collateral. This is then done with a distributed key management process. On the other hand, other banks prefer to have full collateral custody.
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Specifically, the solution makes use of a 3-of-5 multi-signature escrow wallet. This system requires multiple private keys to authorize any transaction. Therefore, Bitcoin holders have important visibility of their collateral on-chain. This is consistent with the basic rule of not your keys, not your coins. Consequently, this strikes a strong chord in the Bitcoin community now.
Besides, the borrowers also benefit from traditional banking terms. These terminologies include competitive rates and flexible drawdown schedules. They also have the white-glove service that a regulated bank provides. This is a combination of the best of decentralized financial and traditional banking practices. The distributed key management also gives a cryptographic guarantee. Therefore, assets do not get rehypothecated, as is common elsewhere.
Sygnum Bank Pioneers Regulated Non-Custodial BTC Loans
Max Kei, CEO and Founder at Debifi, commented on the launch. He said that a Bitcoin loan must not entail blind trust in a custodian. Furthermore, he highlighted the 3-out-of-5 structure of MultiSYG, which enables verification. Borrowers can verify their collateral on-chain while enjoying the banking relationship of Sygnum. Kei believes that this is exactly what the market has been waiting for.
The MultiSYG initiative lead at Sygnum Bank, Pascal Eberle, agreed. He noted that they are bringing Bitcoin-native technology to the area of regulated bank lending. Thus, borrowers get to take advantage of bank-grade pricing and loan flexibility. At the same time, they retain cryptographic proof and partial control of their holdings. Ultimately, this approach uses self-sovereignty coupled with powerful banking products.
Sygnum is the sole regulated bank in the world to provide this service. The non-custodial approach is consistent with the self-sovereignty principles. These principles are increasingly being the drivers of institutional Bitcoin adoption. Therefore, this is an important differentiator in the competitive game. This is especially the case as more companies add Bitcoin to their balance sheets.
MultiSYG will complement Sygnum’s existing Credit & Lending portfolio. The service will be available to all Sygnum Bank customers. This includes clients in all jurisdictions on the H1 2026 launch. The result is that the firms are making millions of non-custodial loans already. This collaboration is a big leap forward for institutional digital asset finance.
