Crypto Custody Boost: Sygnum & Deribit Team Up with Fireblocks
Keeping Crypto Safe: Sygnum and Deribit Team Up
In the fast-changing world of cryptocurrency, keeping your digital money safe is super important. Recent big hacks, like the $1.4 billion theft from Bybit, show us that we need strong ways to store and protect our crypto[2]. So, Sygnum, a top digital asset bank, has joined forces with Deribit, the world’s biggest crypto derivatives exchange, to keep your assets safe while you trade[1]. They’re using a cool new technology called “Off Exchange” from Fireblocks to make this happen[2][3].
How Sygnum Protects Your Assets
Sygnum’s special custody platform, Sygnum Protect, helps keep your assets safe by separating the trading and storage parts. This means your money is stored off the bank’s balance sheet, making it harder for hackers to steal and safer if the exchange has problems[1]. This is especially important for big traders who want to keep their assets safe.
Key Features of Sygnum Protect
- Bank-Level Security: Your assets are stored in a real bank, with super strong security to protect against smart hackers[1].
- Off-Balance Sheet Custody: Your money is kept separate from the bank’s money, so if the exchange has problems, your assets are still safe[1].
- Flexible Collateral Options: You can use different types of assets as collateral, like regular money, crypto, or stocks, to make trading easier[1].
How Fireblocks’ “Off Exchange” Service Helps
The partnership with Fireblocks lets Sygnum and Deribit use the “Off Exchange” service. This means you can mirror your assets on Deribit’s platform without actually moving them. So, you can trade without putting your money at risk on the exchange[2][3]. Fireblocks keeps your assets safe in special wallets, and on-chain settlement adds another layer of protection against fraud and bankruptcy[1].
Benefits for Big Traders
- Access to Deep Liquidity: You can use Deribit’s huge liquidity pool, with over $1 trillion in trading volume in 2024, without putting your assets at risk[2].
- Reduced Risk of Exchange Defaults: By keeping your assets off the exchange, you don’t have to worry about the exchange going bust and losing your money[1].
- More Control and Transparency: You can see and control your assets even when you’re trading on the exchange[3].
Conclusion: A New Way to Keep Crypto Safe
Sygnum and Deribit teaming up to use Fireblocks’ technology is a big step forward in keeping crypto assets safe. This partnership gives traders the security they need and the liquidity they want. As the crypto world keeps changing, collaborations like these will help keep our digital money safe.
Sources:
