Sygnum adds off-exchange crypto custody to Deribit with Fireblocks tech

Update (March 5, 2:00 pm UTC: This article has been updated to add commentary from Fireblocks Network’s Richard Astle.

Cryptocurrency banking firm Sygnum is partnering with crypto derivatives exchange Deribit, providing its off-exchange custody platform, Sygnum Protect.

On March 5, Sygnum announced the expansion of Sygnum Protect, its off-exchange custody platform, to include Deribit, one of the world’s largest derivatives exchanges in crypto.

This integration enables institutional Deribit traders to hold their assets in Sygnum’s institutional-grade custody while accessing Deribit’s broad trading offering and liquidity.

“This integration provides institutional traders with both the capabilities and security assurances they require to trade any of Deribit’s leading products comfortably,” Deribit CEO Luuk Strijers said.

Crypto infrastructure firm Fireblocks involved

Deribit’s integration of Sygnum Protect involves collaboration with the crypto infrastructure firm Fireblocks, which provided its off-exchange solution enabling trades to mirror assets held in Sygnum’s custody to Deribit.

“This integration with Sygnum Protect and Deribit demonstrates the power of Fireblocks Off Exchange,” Fireblocks CEO Michael Shaulov said, adding:

“Exchanges and custodians can now leverage our standardized integration without requiring custom development — accelerating institutional adoption so assets can be securely held via regulated bank custody.”

According to the firms, the integration mitigates counterparty risks while trading on exchanges and provides additional protection against increasingly sophisticated cybersecurity attacks.

Deribit’s assets are held in a Sygnum collateral account

According to Richard Astle, Fireblocks Network’s vice president of business development, the assets held in custody by the bank on behalf of the trading client are held in a Sygnum collateral account.

“This allows the trading client to trade on Deribit without pre-funding the exchange. Importantly, this uses the exact same technical integration of Fireblocks Off Exchange, except the custodian would verify any settlements with the exchange,” Astle told Cointelegraph.

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Fireblocks’ Off Exchange solution was launched in November 2023 to provide a trading and asset management tool enabling trading on centralized exchanges from an onchain multiparty computation (MPC) shared wallet.

The solution initially launched with support for Deribit, with HTX, ByBit, OKX, Gate.io, BIT, OneTrading, Coinhako, Bitget and other exchanges.

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