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      Bitget Partners with Sygnum for Off-Exchange Custody of Institutional Collateral

      Bitget, a cryptocurrency exchange, has partnered with Sygnum Bank, a Swiss digital-asset bank, to offer off-exchange custody for its institutional clients. This collaboration allows clients to hold their trading collateral through Sygnum Protect, a platform that ensures the assets are kept in segregated, bankruptcy-remote accounts governed by Swiss law. This arrangement effectively removes counterparty risk from the exchange, as the assets do not appear on Bitget's balance sheet, allowing for safer trading practices.

      The move comes in response to growing concerns about the safety of assets held on exchanges, particularly following the collapse of FTX in 2022, which highlighted the risks associated with customer assets becoming creditor claims. By utilizing Sygnum Protect, Bitget's clients can maintain legal ownership of their assets while still being able to trade, a significant shift from traditional exchange deposits where the exchange holds the assets.

      Sygnum Protect, which launched in April 2024, has seen rapid growth, with assets under custody increasing by over 900% to surpass $1 billion by the end of 2025. The platform now serves several major exchanges, including Binance and Bybit, which together account for a substantial portion of global trading volumes. Bitget's integration into this platform reflects a broader trend in the cryptocurrency sector where off-exchange custody is becoming a standard expectation for institutional participation.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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