Debifi and Sygnum launch MultiSYG
Today Debifi and Sygnum launch MultiSYG. Sygnum clients can now borrow against their bitcoin while the collateral sits in multisig, and they hold a key themselves.
Sygnum is also the first bank on the Debifi API. That is the part of this news we are most excited about, and we explain why below.
Why now
The past year was hard on bitcoin security. Again and again, one secret was enough to empty a wallet: a leaked seed, a weak key, a single point of failure.
At the same time, more holders want to borrow against their bitcoin instead of selling it. Until now, doing that at a bank usually meant handing the coins over. MultiSYG gives them another option.
How MultiSYG works
Each client's bitcoin sits in its own multisig wallet, with keys spread across the client, Sygnum Bank and independent keyholders, so one stolen or weak key is not enough to move it. The client can check the collateral on chain at any time, and a lost key can be recovered with the other keyholders.
Each side does what it does best
Sygnum keeps the client and the terms: the relationship, the loan and the Swiss regulatory framework. Debifi runs everything that touches the bitcoin.
That split is the point. A bank does not have to become a bitcoin engineering company to offer bitcoin-backed lending in multisig. It plugs into infrastructure built for exactly that.
"A year ago I said borrowers shouldn't need to trust a custodian blindly. This past year showed why, with one secret often being enough to empty a wallet. As borrowing against Bitcoin grows, MultiSYG gives clients a loan where one stolen or weak key is not sufficient to move their collateral." Max Kei, Founder of Debifi
"Bitcoin pays no yield, and it is not meant to; it is a finite bearer asset, like gold. What holders want is somewhere to keep it safe and, increasingly, a regulated way to put part of it to work. MultiSYG technology is how Sygnum offers both." Pascal Eberle, Chief of Staff and Co-Lead of Bitcoin@Sygnum
For other banks and fintechs
MultiSYG runs on the Debifi API, our infrastructure for banks and lending platforms. Sygnum is the first bank to use it.
With the API, you offer bitcoin-backed lending in multisig inside your own product. You keep the client, the brand, the pricing and the compliance perimeter. Debifi runs everything that touches the bitcoin, and the collateral never sits on your balance sheet.
Want to integrate bitcoin-backed loans in multisig into your own product? Get in touch with us!