Introduction to MultiSYG
In an innovative move within the blockchain lending sector, Sygnum Bank, a Swiss financial institution specializing in digital assets, has teamed up with Debifi, a startup in the Bitcoin lending arena, to introduce MultiSYG. This unique loan platform, scheduled to be launched in the first half of 2026, will enable borrowers to maintain partial control over their Bitcoin (BTC) collateral while leveraging the advantages of multi-signature (multi-sig) wallets.
Features of MultiSYG
MultiSYG is specifically designed for institutional investors and high-net-worth individuals, offering a safer alternative to conventional crypto lending models that typically require borrowers to relinquish complete ownership of their assets to the lender. The platform employs a multi-sig system that necessitates the approval of three among five appointed signatories, including representatives from Sygnum, the borrowers themselves, and independent third-party members, before any movement of collateral can take place.
This structure is set in place to combat rehypothecation, a practice where a lender reuses collateral pledged by borrowers, often without their knowledge or consent, for other financial dealings.
Addressing Vulnerabilities in Lending
By incorporating a shared-control paradigm, Sygnum and Debifi aim to address the critical vulnerabilities that have historically plagued centralized lending platforms, which can lead to significant financial losses. Notably, borrowers will have continuous visibility and confirmatory access to their BTC collateral status on the blockchain throughout the life of the loan.
Statements from Leadership
Max Kei, CEO of Debifi, emphasized that this initiative comes as a response to an increasing need for non-custodial lending options that marry blockchain’s inherent transparency with regulatory compliance and banking standards. “Borrowers shouldn’t need to trust a custodian blindly,” stated Kei, underlining the platform’s innovative approach to asset security.
Pascal Eberle, who spearheads the MultiSYG project, further explained, “This solution merges the advantages of self-custody with the offerings of regulated banking services, allowing clients to enjoy favorable loan terms, flexibility in withdrawals, and comprehensive control over their BTC assets while also benefiting from cryptographic verification of their holdings.”
