TLDR
- Sygnum Bank has partnered with Debifi to introduce a Bitcoin-backed lending product.
- The new product uses a multisignature model, ensuring clients retain control over their collateral.
- Borrowers can take out fiat loans backed by Bitcoin, with three of five key holders needed to authorize transactions.
- The innovative approach prevents rehypothecation and allows borrowers to track their Bitcoin collateral on the blockchain.
- The product will be available to all Sygnum Bank clients upon its debut in 2026.
Sygnum Bank has partnered with Debifi to launch a new Bitcoin (BTC)-backed lending product. This service utilizes a Bitcoin-native multisignature model, enabling clients to maintain control over their collateral. Sygnum clients can now secure fiat loans backed by Bitcoin, ensuring their assets remain secure and under their control.
New Multisignature Lending Model for Bitcoin Loans
The new product introduces a multisignature setup with distributed key management. This ensures that at least three of the five key holders must authorize any transaction. Sygnum Bank‘s innovative approach prevents rehypothecation, allowing borrowers to track and verify their Bitcoin collateral on the blockchain.
Sygnum Bank’s new service allows clients to borrow fiat currency against their Bitcoin holdings. This method ensures that the client retains control of their collateral throughout the loan period. “MultiSYG’s distributed key management allows our clients to verify control over their Bitcoin collateral,” the bank said.
BTC-Backed Loans Gain Popularity in 2025
Bitcoin-backed loans are gaining popularity, as evidenced by several high-profile deals this year. For instance, Bitcoin mining company Riot Platforms secured a $100 million loan using its Bitcoin reserves. Similarly, Coinbase Prime extended a $100 million credit facility to Cleanspark, another Bitcoin-backed borrower.
In May, Cantor Fitzgerald issued Bitcoin-backed loans to FalconX and Maple Finance. FalconX received a facility worth over $100 million, while Maple Finance completed its first tranche of deals. These recent developments indicate that Bitcoin-backed lending is emerging as a key asset in the digital finance ecosystem.
Sygnum Bank’s new Bitcoin lending product marks a significant step forward in this growing market. It will be available to all Sygnum customers starting in 2026, further solidifying Bitcoin’s role in modern financial services.
