Sygnum and Debifi launch MultiSYG Bitcoin-backed lending service

Sygnum Bank AG and Debifi have introduced MultiSYG, a Bitcoin-backed lending service that utilizes segregated multi-signature wallets to manage collateral. Under this arrangement, pledged Bitcoin is held in dedicated wallets where control is distributed among the borrower, Sygnum, and independent institutional keyholders.

Transactions within these wallets require multiple signatures governed by Bitcoin Script rules, ensuring that a single compromised key cannot move the collateral. While the companies have not publicly disclosed the specific signing threshold, interest rates, or loan-to-value limits, the structure is designed to keep collateral client-owned, off the bank’s balance sheet, and bankruptcy remote.

This launch follows a trend of increasing Bitcoin prominence within Sygnum’s lending operations. The bank reported that Bitcoin now accounts for more than 80% of its pledged collateral volume, an increase from 63% in 2023.