Sygnum and Debifi Unveil MultiSYG: The Bitcoin Lending Revolution for 2026

 

Sygnum and Debifi Launch MultiSYG: Bitcoin Lending Enters a New Era of Security

Swiss digital asset bank Sygnum has joined forces with Bitcoin lending platform Debifi to introduce MultiSYG, a revolutionary multisignature lending product designed for institutional clients and high-net-worth individuals. Set to launch in the first half of 2026, the platform enables borrowers to secure fiat loans against their Bitcoin holdings while retaining shared control over collateral through a distributed key management system.

The announcement, reported by Cointelegraph, signals a significant evolution in the Bitcoin-backed lending market, which is seeking more secure, transparent, and regulated solutions in the wake of high-profile failures among centralized lenders in 2022.

How MultiSYG Works

MultiSYG introduces a multisignature, or multisig, approach to Bitcoin-backed loans. Borrowers retain partial control of their collateral via a five-key authorization system, with any transaction requiring approval from at least three of the five key holders. These keys are distributed among Sygnum, the borrower, and independent third-party signers, ensuring that no single party can unilaterally access or move funds.

This system addresses a long-standing issue in Bitcoin lending: the lack of transparency and the counterparty risks associated with surrendering custody of assets. Borrowers can now monitor and verify the status of their collateral directly on the blockchain, mitigating fears that their Bitcoin could be mismanaged or reused without consent.

Debifi CEO Max Kei emphasized the platform’s focus on trustless lending, stating that clients should not have to rely solely on custodians to protect their funds. “MultiSYG meets a growing demand for non-custodial Bitcoin lending, combining institutional-grade security with the regulatory assurances of a licensed bank,” he said.

A Response to Past Market Failures

The 2022 collapse of major crypto lenders such as Celsius Network and BlockFi highlighted the dangers of centralized Bitcoin-backed lending. Traditional models required borrowers to hand over full custody of their collateral, creating significant counterparty risk. Many clients lost access to funds due to liquidity mismanagement or rehypothecation, where lenders repurposed client assets to back other financial deals.

Sygnum’s MultiSYG platform directly addresses these risks. According to Pascal Eberle, initiative lead for Bitcoin projects at Sygnum Bank, “Borrowers can hold their own keys while accessing regulated banking products, creating a balance between financial flexibility and security.” The multisig design effectively eliminates single points of failure, a safeguard that many investors now demand before entering the market.

Institutional Adoption Accelerates

Institutional interest in Bitcoin custody and lending has surged in 2025. Major financial players, including Deutsche Bank, have announced plans to provide regulated crypto custody services in 2026. The industry’s pivot toward institutional-grade, transparent custody solutions reflects growing demand from corporate clients and high-net-worth individuals who require security without relinquishing control of their assets.

MultiSYG’s model is poised to capitalize on this trend. By combining traditional banking oversight with cryptographic proof of ownership, the platform provides institutions with a regulated, risk-managed avenue for participation in Bitcoin-backed lending markets.

The Bitcoin Lending Market Rebounds

Following the 2022 lending crisis, the Bitcoin-backed lending market has experienced a strong recovery. Research from CoinDesk and other financial analysts shows that surviving platforms have implemented stricter risk management protocols, including enhanced collateral requirements, tighter liquidation thresholds, and increased transparency in rehypothecation policies.

As of August 2024, the global market for Bitcoin-backed loans totaled approximately $8.5 billion, with projections suggesting growth to nearly $45 billion by 2030. Platforms like Ledn processed $1.16 billion in cryptocurrency loans during the first half of 2024, while Cantor Fitzgerald launched a $2 billion Bitcoin lending program in mid-2024.

Decentralized finance (DeFi) lending protocols have also recovered quickly, with total value locked (TVL) approaching record highs last seen in 2021. The transparency and on-chain verification offered by these protocols have helped restore investor confidence, signaling that the market is increasingly resilient to previous vulnerabilities.

Regulatory Assurance Meets Crypto Innovation

The MultiSYG product merges the security of regulated banking with the flexibility of crypto assets, positioning itself as a leading option for institutional borrowers. By preventing rehypothecation and enabling distributed control over collateral, the platform provides both security and transparency—features that are critical for widespread adoption.

Market analysts note that volatility remains a key challenge. Bitcoin’s price fluctuations can trigger rapid liquidations, even with robust collateral management. Additionally, skepticism persists among some investors regarding the reliability of third-party custodians. MultiSYG’s hybrid approach aims to bridge this gap by offering cryptographic proof of control alongside the compliance and trust assurances of a regulated bank.

Implications for the Broader Crypto Ecosystem

The launch of MultiSYG marks a significant step toward mainstream institutional adoption of Bitcoin-backed lending. By providing a regulated, secure, and non-custodial option, the platform addresses many of the structural weaknesses that caused the 2022 lending collapse.

Financial institutions that adopt this model can offer Bitcoin loans with reduced counterparty risk, which may encourage more conservative investors to enter the market. Furthermore, transparent reporting and blockchain verification could become industry standards, raising the bar for security and operational accountability across the sector.

The broader implication is clear: as platforms like MultiSYG demonstrate the viability of secure, regulated crypto lending, institutional participation is likely to increase, contributing to a more robust and resilient market infrastructure.

Conclusion

The partnership between Sygnum and Debifi to launch MultiSYG represents a significant advancement in Bitcoin-backed lending. By integrating multisignature security, preventing rehypothecation, and offering institutional-grade oversight, the platform addresses key challenges that have historically hindered the growth of the market.

As Bitcoin lending rebounds from previous setbacks, MultiSYG offers a model for future financial products that merge traditional regulatory frameworks with the transparency and efficiency of blockchain technology. For institutional investors and high-net-worth individuals, it presents a unique opportunity to access liquidity without surrendering asset control—a crucial factor for the continued maturation of the crypto financial ecosystem.

With regulatory pressures easing and market confidence returning, the introduction of MultiSYG in early 2026 could signal the beginning of a new era in institutional Bitcoin lending, one that balances security, transparency, and innovation.

Source

Writer @Ellena

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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