LUGANO, SWITZERLAND — Swiss digital asset bank Sygnum Bank has partnered with Bitcoin Lending startup Debifi will launch what it says is the first bank-backed lending platform that doesn’t require borrowers to give up full control of their BTC.
The offering, called MultiSYG and scheduled to open in the first half of 2026, will target institutions and high-net-worth individuals who want access to bank-quality lending services but are wary of remortgaging, a common practice in traditional finance where lenders reuse customer collateral to support other transactions.
The move underscores the growing market for digital asset-backed financial products, which has evolved well beyond early and failed crypto lenders like BlockFi and Celsius. Institutional players are increasingly demanding more sophisticated structures, particularly those that avoid the single point of failure risks that plagued centralized platforms over the last cycle.
“Borrowers should not need to blindly trust a custodian,” Debifi CEO Max Kei said in a statement, pointing to years of demand for non-custodial lending options.
Most banks offering bitcoin-backed loans typically require full custody, depriving the borrower of their assets until repayment. With MultiSYG, potential borrowers can deposit BTC into a wallet controlled by five parties – Sygnum, the borrower and independent signatories – with any collateral movement requiring three signatures. This model helps prevent remortgaging and allows borrowers to verify the existence of their funds on-chain throughout the life of the loan.
“[This] combines the best of both worlds: the ability to hold your own keys while accessing regulated banking products and white glove service,” said Pascal Eberle, head of the Bitcoin@Sygnum and MultiSYG initiatives at Sygnum Bank, in a statement. “Borrowers can benefit from bank-grade conditions in terms of price, withdrawal flexibility and loan duration, all retaining cryptographic proof of their holdings and partial control of their BTC.”
Read more: Arch aims to help Bitcoin holders reduce US tax bill with BTC mining investments
