Sygnum hits $1 billion milestone with off-exchange crypto custody

The Zurich-based digital asset bank said on Wednesday that assets on its Protect platform – launched only in 2024 – have surged, driven by rapid adoption among both crypto-native firms and traditional finance players.

Trading volumes have increased as market participants look to remain active during periods of heightened volatility – but without holding assets directly on public crypto exchanges.

Off-exchange, within a regulated banking framework

According to Sygnum, collateral volumes on the platform rose by more than 900 percent in 2025, with momentum continuing into this year. The platform enables clients to hold assets off-exchange within a regulated banking environment while maintaining trading access across major crypto venues.

A key growth driver, Sygnum said, is the rising presence of technology-driven traders from traditional finance (TradFi). Protect primarily serves large institutional traders that are onboarded with both Sygnum and global crypto exchanges. This increasingly includes tech-driven TradFi players attracted by opportunities presented by crypto market volatility.

Binance, Deribit, Bybit

Sygnum launched Protect in 2024 together with Binance and has since added further exchange partners, including Deribit and Bybit.

The bank sees the strong growth as part of a broader structural shift, as institutional standards such as the separation of trading and custody functions and independent asset safeguarding become embedded in digital asset markets. The platform also accepts yield-generating collateral such as US Treasuries.