Sygnum Partners with Deribit to Enhance Institutional Crypto Security: Report
- Sygnum expands its custody service to Deribit, reducing counterparty risks while keeping assets secure off-exchange.
- Sygnum Protect minimizes exchange-related risks, providing institutional traders with liquidity and safety.
- The Fireblocks Off-Exchange solution boosts institutional adoption, enabling secure custody and easy integration.
Sygnum Bank has expanded its over-the-counter custody solution Sygnum Protect to Deribit, the largest crypto options exchange. This integration enables institutional traders to trade on Deribits contracts while banking on platforms custody platform. The move is due to reduce counterparty risks and keep the funds out of the exchanges in order to shield them against cyber threats. Off-Exchange of platform also provides protection of funds, as all settlements and collateral are managed through the solution.
Sygnum Protect Minimizes Risks
Assets held directly on an exchange also pose certain risks to institutional traders, such as the risk of losing money to hacks, insolvencies, or any form of operational failure. These risks are minimal with Sygnum Protect since it has the features of traditional financial markets with the support of the regulated Swiss banking system. For institutions the service allows to obtain liquidity and at the same time the assets remain protected from the volatility of the exchange.
The latest hack attacks have made counterparty risks more pronounced in the crypto space and have led to massive withdrawals in exchanges. Platforms Chief Product Officer Dominic Lohberger highlighted the need for custody to be separated from trading for a better level of security.
Counterparty risk awareness in crypto comes in cycles, and the recent major cyber-attack has triggered one of the largest waves of exchange derisking since FTX.
This partnership also benefits Deribit because it provides its institutional clients with security and transparency. Regarding the benefits of the integration, the CEO of Sygnum, Luuk Strijers stated:
We are very pleased to offer additional security and transparency capabilities to our institutional clients looking to trade crypto derivatives through Sygnum Protect.
Fireblocks Off-Exchange Solution
Off-Exchange solution occupies a strategic position in the Fireblocks to connect and operate exchanges and other custodians without involving tedious and time-consuming integrations. Michael Shaulov, CEO at Fireblocks, said that the solution contributes to the institutional integration as it enables regulated custody services to be plugged directly into the trading infrastructure.
The crypto market is shifting towards solutions that are safer for trading as a new trend. The expansion of its custody services with Sygnum Protect is an effective approach toward ensuring the safety of assets, letting institutions plunge into crypto trading with minimal risks involved.
Read more: https://www.tronweekly.com/sygnum-partners-with-deribit-to-enhance/
Text source: TronWeekly
