Crypto exchange Bitget has integrated with Sygnum Bank's "Protect" off-exchange custody platform, extending a settlement arrangement that now underpins more than half of global spot and derivatives trading volume.
Sygnum is a Swiss-regulated digital asset bank. Bitget counts more than 125 million users across over 150 countries and ranks among the world's largest venues by derivatives volume. Under the integration, Bitget's institutional clients can trade spot and derivatives on the exchange while their collateral remains held off Bitget's balance sheet within Sygnum's regulated custody facility in Switzerland.
Under Swiss banking law, the collateral is ring-fenced and bankruptcy-remote from the exchange. The corresponding balance is mirrored on Bitget's books and remains available for trading purposes.
Sygnum accepts bitcoin, ether, stablecoins and U.S. Treasuries as collateral. Yields generated by the Treasury holdings help offset custody costs — a point Thomas Eichenberger, deputy group chief executive of Sygnum, flagged as a differentiator compared with non-bank custodial platforms.
"Off-exchange custody has become the settlement backbone of institutional digital asset trading," Eichenberger said.
The Protect platform launched in April 2024 and has grown rapidly. Assets under custody expanded by more than 900% in 2025, surpassing $1 billion and making it the largest bank-operated platform of its kind.
Bitget's adoption pushes the share of global trading volume that clears against bank-held collateral past the halfway mark. Exchanges already integrated with the Protect platform collectively account for more than half of global spot and derivatives trading volumes.
"As the market's largest venues converge on bank-grade custody, this is fast becoming the standard institutions expect," Gracy Chen, chief executive of Bitget, said.
