A New Era for Secure Bitcoin Lending

Swiss digital asset bank Sygnum has announced a partnership with Debifi, a non-custodial Bitcoin lending startup, to launch a new loan platform called MultiSYG.

The service is designed for institutions and high-net-worth borrowers who want to access liquidity without giving up control of their Bitcoin holdings.

How the Multi Sig Model Works

MultiSYG introduces a five-party multi-signature system, meaning that any transaction or movement of collateral requires at least three out of five approvals.

These parties include Sygnum, the borrower, and independent third-party signers, ensuring that no single entity can move or rehypothecate the funds.

This approach directly addresses one of the biggest weaknesses in traditional crypto lending models, where borrowers lost full control of their collateral once deposited.

By keeping assets partially under the borrower’s own key control, the platform provides on-chain transparency and verifiable security.

Why It Matters

Many lending platforms in previous market cycles failed due to poor collateral management and lack of transparency.

MultiSYG aims to rebuild confidence in crypto lending by offering regulated loan products that do not compromise custody.

Borrowers can retain visibility over their Bitcoin at all times while still gaining access to fiat or stablecoin liquidity.

For institutions, this makes it possible to manage large-scale loans with full compliance and real-time monitoring of collateral reserves.

Launch Timeline and Market Impact

The MultiSYG platform is expected to launch in the first half of 2026, initially serving qualified clients in Switzerland and select international markets.

By combining Sygnum’s regulated banking framework with Debifi’s technical infrastructure, the project could become a blueprint for future Bitcoin-backed lending.

The initiative may also drive further institutional adoption of crypto loans, setting a new benchmark for security and governance.

Outlook

If successful, MultiSYG could represent a turning point for the Bitcoin lending sector.

It offers a balance between traditional banking compliance and the self-custody principles valued by crypto investors.

Sygnum’s move demonstrates that Bitcoin can serve as reliable collateral for sophisticated financial products while keeping users in control of their assets.