Institutional crypto traders are gaining a new level of security and flexibility as Swiss digital asset bank Sygnum partners with Deribit, one of the world’s largest crypto derivatives exchanges. The collaboration expands Sygnum Protect, an off-exchange custody platform, to include Deribit’s institutional trading ecosystem. This move is designed to reduce counterparty risk, enhance crypto asset security, and drive institutional adoption of digital asset trading.
Sygnum announced on March 5 that its off-exchange custody service, Sygnum Protect, will now support Deribit traders. This integration allows institutional users to securely store their digital assets in Sygnum’s regulated bank custody while continuing to trade on Deribit’s platform.
“This integration provides institutional traders with both the capabilities and security assurances they require to trade any of Deribit’s leading products comfortably,” said Deribit CEO Luuk Strijers.
By combining Sygnum’s institutional-grade custody solutions with Deribit’s high-liquidity derivatives market, the partnership aims to address key concerns of professional investors, particularly around custody risks, counterparty exposure, and cyber threats.
Fireblocks’ Role in Enabling Secure Off-Exchange Trading
A critical component of this integration is Fireblocks, a leading crypto infrastructure firm specializing in secure digital asset solutions. Fireblocks’ off-exchange trading technology enables Deribit users to mirror assets held in Sygnum’s custody while trading seamlessly on the exchange.
“This integration with Sygnum Protect and Deribit demonstrates the power of Fireblocks Off Exchange,” said Fireblocks CEO Michael Shaulov.
He emphasized that exchanges and custodians can now integrate Fireblocks’ technology without requiring custom development, accelerating institutional adoption while maintaining regulatory compliance.
This partnership directly addresses one of the biggest hurdles in institutional crypto trading: counterparty risk. By leveraging Sygnum’s regulated banking framework, Deribit’s trading infrastructure, and Fireblocks’ security technology, institutional traders gain:
- Reduced Counterparty Risk: Funds remain securely held in bank-grade custody, limiting exposure to exchange-related risks.
- Enhanced Cybersecurity: Protection against evolving cyber threats that target centralized exchanges.
- Seamless Trading Access: The ability to trade on Deribit without transferring assets directly to the exchange.
Institutionalization of Crypto Trading
As digital assets continue to attract institutional capital, solutions that offer greater security, compliance, and efficiency are becoming essential. Traditional finance has long relied on off-exchange custody models, and now crypto markets are rapidly adopting similar frameworks.
With regulators scrutinizing crypto exchanges and security breaches still a major concern, institutional-grade custody solutions could define the next phase of crypto market maturity. The Sygnum-Deribit-Fireblocks collaboration signals a shift towards more secure and scalable trading environments, making it easier for hedge funds, asset managers, and institutional investors to participate in crypto derivatives markets with confidence.
What’s Next?
As institutional demand for secure crypto trading solutions grows, expect to see more exchanges and custodians adopting off-exchange custody models. With Sygnum, Deribit, and Fireblocks leading the charge, this model could become the new industry standard, paving the way for greater institutional participation and regulatory clarity.
The question remains: Will other major exchanges follow suit, or will counterparty risk remain a key concern for institutional crypto traders? The coming months will be pivotal in shaping the future of secure digital asset trading.
