Sygnum Launches Bitcoin Loans With Collateral Keys Shared Across Parties

TL;DR: Sygnum and Debifi have launched MultiSYG, a Bitcoin-backed lending service using segregated multisignature wallets. The arrangement spreads control of collateral across several parties, while borrowers remain exposed to the economics of a secured loan. Sygnum and Debifi launched MultiSYG on October 23, bringing shared control of Bitcoin collateral into the bank’s lending business. Each borrower receives a dedicated wallet with keys distributed among several parties. In their launch announcement, the companies described a structure involving the client, Sygnum Bank and independent institutional key holders. Transactions require valid signatures under the wallet’s Bitcoin Script rules, so compromising one key would not be enough to move the collateral. The service arrives as Bitcoin becomes more prominent in Sygnum’s lending book. The bank says the asset now represents more than 80% of pledged collateral volume, compared with 63% in 2023. Those figures describe the bank’s own clients, rather than the entire crypto lending market. Shared Keys Change The Custody Arrangement Sygnum’s product information says MultiSYG holdings and movements can be checked on-chain. Its broader len...