Sygnum reveals rise in off-exchange custody
19 March 2026 Switzerland
Image: SOMKID/stock.adobe.com
Sygnum, a digital asset banking group, says assets on Protect, its off-exchange custody platform, have risen sharply as institutional TradFi firms join the platform amid attractive levels of crypto market volatility.
According to the firm, increased counterparty risk awareness has contributed to a rise in trading volumes by crypto exchanges, hedge funds, market makers, and prime brokers.
In conjunction with continued trust in Swiss-regulated infrastructure, assets on Protect surpassed US$1 billion.
Sygnum says its Protect collateral volumes increased over 900 per cent YoY in 2025, stemming from the demand for regulated counterparty-risk management, alongside awareness of security threats.
Dominic Lohberger, chief product officer at Sygnum, believes that the platform is “strengthening industry resilience,” and that the firm looks forward to “further expanding our collateral options and welcoming new exchanges to the Sygnum Protect platform in 2026”.
Head of risk at Wintermute, Alain Passini, adds: “This infrastructure layer future-proofs our operations and enhances overall resilience.
“The ability to generate yield on collateral helps offset costs, making it a net positive for our bottom line.”
Client collateral is held off Sygnum’s balance sheet, in segregated, bankruptcy-remote accounts with balances mirrored and available for trading on the exchange, aided by the bank’s custody infrastructure and security team.
According to the firm, increased counterparty risk awareness has contributed to a rise in trading volumes by crypto exchanges, hedge funds, market makers, and prime brokers.
In conjunction with continued trust in Swiss-regulated infrastructure, assets on Protect surpassed US$1 billion.
Sygnum says its Protect collateral volumes increased over 900 per cent YoY in 2025, stemming from the demand for regulated counterparty-risk management, alongside awareness of security threats.
Dominic Lohberger, chief product officer at Sygnum, believes that the platform is “strengthening industry resilience,” and that the firm looks forward to “further expanding our collateral options and welcoming new exchanges to the Sygnum Protect platform in 2026”.
Head of risk at Wintermute, Alain Passini, adds: “This infrastructure layer future-proofs our operations and enhances overall resilience.
“The ability to generate yield on collateral helps offset costs, making it a net positive for our bottom line.”
Client collateral is held off Sygnum’s balance sheet, in segregated, bankruptcy-remote accounts with balances mirrored and available for trading on the exchange, aided by the bank’s custody infrastructure and security team.
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