Swiss digital asset pioneer Sygnum Bank has announced a new lending framework that could reshape how Bitcoin-backed credit works.
Teaming up with blockchain lending platform Debifi, the bank is developing a system that allows borrowers to take out fiat loans without giving up full control of their BTC.
A New Kind of Bitcoin-Backed Credit
Set to debut in early 2026, the upcoming product – built around a multisignature custody model – gives clients shared authority over their collateral. Instead of turning their Bitcoin over entirely to a lender, borrowers will participate in a three-of-five signature scheme, where multiple independent parties must authorize any movement of funds.
The model, called MultiSYG, effectively prevents third parties from reusing or leveraging customers’ collateral – a practice known as rehypothecation that has plagued many traditional crypto lending platforms. Sygnum says the system provides the transparency and self-custody that many institutional Bitcoin holders have long demanded.
The setup also allows users to verify their holdings directly onchain, providing an extra layer of trust in an industry still rebuilding confidence after years of centralized failures.
How It Fits Into Bitcoin’s Financial Revival
The announcement comes during a comeback phase for Bitcoin-based financing, as digital asset lending finds new traction after its 2022 collapse. A series of large-scale deals this year has reintroduced BTC as credible collateral in mainstream finance.
In recent months, companies like Riot Platforms and Cleanspark have tapped their Bitcoin reserves to secure $100 million credit lines, while institutional lenders such as Cantor Fitzgerald and FalconX have structured nine-figure facilities backed entirely by crypto holdings.
Sygnum’s approach, however, takes a different path – blending traditional banking structure with onchain transparency, a hybrid model that could appeal to corporate treasuries, miners, and high-net-worth investors seeking liquidity without losing custody.
Bringing Banking Standards to Onchain Finance
The collaboration between Sygnum and Debifi reflects a wider movement to merge decentralized finance tools with regulated banking practices. By embedding Bitcoin into a multisignature framework under Swiss oversight, Sygnum aims to prove that secure, compliant, and verifiable lending can exist entirely on blockchain rails.
Analysts see the move as a potential milestone for Europe’s crypto banking landscape, especially given Switzerland’s reputation for regulatory clarity and innovation.
For Sygnum, which already serves institutional clients in more than 15 jurisdictions, the MultiSYG model could become the foundation for a new generation of digital asset credit products – ones where borrowers don’t have to choose between liquidity and sovereignty.
In a market still cautious after past lending crises, giving clients control of their own Bitcoin keys might be exactly what’s needed to rebuild long-term trust.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
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Source: https://coindoo.com/sygnum-bank-unveils-bitcoin-loan-system-that-lets-clients-keep-their-keys/
