Swiss Bank Sygnum to Launch Bitcoin-Backed Loan Platform With Multi-Sig Wallet Control

LUGANO, SWITZERLAND — Swiss digital asset bank Sygnum Bank has teamed up with bitcoin (BTC) lending startup Debifi to launch

The move underscores the growing market for digital asset-backed financial products, which has evolved well beyond the early, and failed,

"Borrowers shouldn’t need to trust a custodian blindly," said Debifi CEO Max Kei in a statement, pointing to years of demand for non-custodial lending options.

Most banks offering bitcoin-backed loans typically require full custody, cutting the borrower off from their assets until repayment.

aid Pascal Eberle, Bitcoin@Sygnum and MultiSYG initiative lead at Sygnum Bank, in a statement.

Swiss Bank Sygnum to Launch Bitcoin-Backed Loan Platform With Multi-Sig Wallet Control

Swiss digital asset bank Sygnum has launched a new investment vehicle designed to generate yield on Bitcoin without reducing investors’ exposure to its price movements.

. The bitcoin DeFi has gained popularity and has the potential to open up a massive market, according to analysts.