Sygnum and Debifi have introduced MultiSYG, a bitcoin-backed lending product that places client collateral in a dedicated multisignature wallet rather than a single-custodian setup. The companies say the structure is the first known example of this type of bitcoin loan being offered by a regulated bank.
The launch follows a plan announced a year ago, when the partners said the product would arrive in the first half of 2026. Sygnum was advertising MultiSYG on its website at the time of writing, although the service was not yet available for use.
How the product is structured
According to the companies, each borrower’s bitcoin collateral is kept in its own separate multisig wallet. The signing conditions are embedded in the wallet’s Bitcoin script, which means any transaction that does not meet the required signature threshold would be rejected by the Bitcoin network itself.
Sygnum told Bitcoin.com News that the arrangement uses a 3-of-5 multisig model. In that setup, at least three signatures are needed to move the collateral. The borrower holds one key, while the other keys are distributed among Sygnum and independent institutional keyholders whose identities were not disclosed because of confidentiality and security policies.
Collateral, liquidation and loan terms
The partners said MultiSYG offers a maximum loan-to-value ratio of 65%. They also said users can verify that their collateral remains in the expected wallet during the life of the loan.
If a margin call results in liquidation of the collateral, Sygnum said the transaction would be signed by the bank and other participants in the multisig arrangement. The companies also said independent keyholders could assist in restoring access to the bitcoin if necessary.
Swiss legal treatment and bank risk separation
Sygnum said that under Swiss banking law, client assets are held off balance sheet and are bankruptcy remote. In practice, that means the collateral is kept separate from the bank’s own assets if Sygnum were to fail.
That legal framing is a central part of the product’s pitch, because it combines on-chain signature rules with a banking structure that the companies say protects customer collateral from becoming part of the bank’s estate.
Where MultiSYG fits in the market
Bitcoin-backed loans secured with multisig wallets are not entirely new. The source article noted that platforms including Unchained and BTCBacked already use multisig protection with 2-of-3 signing setups, while Firefish uses a 3-of-3 model in which two keys are controlled by specialized programs known as oracles and the borrower holds the third.
Debifi founder and CEO Max Kei argued in the announcement that borrowers should not have to rely entirely on a single custodian. He linked that view to recent concerns around single-signature wallet security, citing incidents this year involving Coldcard and Ledger as examples that drew attention to the risks of relying on one secret to control funds.
For now, the next confirmed step is broader availability. While MultiSYG has been formally launched and listed by Sygnum, the product was not yet live for customers at the time of writing.
Source: news.bitcoin.com