Sygnum Bank bets on Bitcoin lending with multisign custody model

The new product is expected to launch in the first half of 2026 and will let clients borrow fiat against Bitcoin held in multisignature wallets.

Sygnum Bank has partnered with Bitcoin-backed lending platform Debifi to launch a multisignature lending product that allows borrowers to retain shared control of their collateral.

According to the Swiss digital asset banks announcement on Friday, the product introduces a Bitcoin-native multisign lending model that allows clients to retain control of their collateral through distributed key management, ensuring that assets cannot be rehypothecated.

Sygnum clients can take out fiat loans backed by Bitcoin in a setup that requires three of five key holders to authorize any transaction, allowing borrowers to track and verify their collateral directly onchain.

“While other banks require full custody for Bitcoin-backed loans, MultiSYGs distributed key management means clients retain verifiable control of their collateral throughout the loan term – a growing demand from Bitcoin investors,” the bank said.

The product will debut in the first half of 2026 and will be available to all Sygnum Bank customers upon launch.

Bitcoin-backed loans are back

Bitcoin-backed loans are making a comeback this year. In April, Bitcoin mining company Riot Platforms used its stockpile as collateral to secure a $100 million credit facility from Coinbase Prime, Coinbases credit arm.

Coinbase Prime issued another $100M loan to mining company Cleanspark in September. The company secured a second line of credit of $100M backed by its Bitcoin treasury from Two Prime in the same month.

According to a Bloomberg report, Cantor Fitzgerald issued Bitcoin-backed loans to FalconX and Maple Finance in May. FalconX confirmed a facility exceeding $100 million under a broader credit arrangement, while Maple Finance completed the first tranche of its deal with Cantor.