Sygnum Bank, alongside Debifi, revealed MultiSYG, a Bitcoin-backed lending service for large clients and institutions. The product is slated to go live in the first half of 2026 and aims to cut counterparty risk within regulated finance. Treasury desks, product builders, and compliance teams are watching the plan because it mixes code-based locks with bank-level rules.
MultiSYG keeps pledged Bitcoin in a 3-of-5 multisignature wallet, requiring any three of five digital keys before funds can move. The five key holders are Sygnum, the licensed bank; the borrower; and three outside parties—such as a trustee, a tech firm, or an auditor—picked to spread power. By keeping the borrower on the signer list and avoiding custody under one roof, the setup reduces single-point-of-failure risk and lets institutions gain liquidity without handing the full stack of Bitcoin to the lender. The design follows Swiss banking law while enforcing code rules.
How MultiSYG works and its compliance context
The upside is distributed control across five desks, an open on-chain record, and alignment with banking rules, factors that can encourage major players to both offer and take Bitcoin-backed credit.
The downside is that extra steps introduce new human and technical hazards. Project documents cite risks such as blind approvals where a signer agrees without reading, hacked devices that sign in secret, lost keys that could render funds inaccessible if any three disappear, and weak operational security or social engineering that bypass code locks. Ultimately, risk hinges on how keys are stored and how each signature is checked.
Sygnum notes that its bank status and the involvement of outside key holders lower many dangers, yet the public lacks detail on how those third parties are chosen or vetted.
The next clear checkpoint is the live release in H1 2026. Until then, the picks for the three outside key holders and the day-to-day rules will decide whether the product truly shields institutional investors and satisfies compliance teams.
