Bitget Moves Institutional Collateral To Sygnum's Off-Exchange Custody
Crypto derivatives exchange Bitget has begun placing institutional client collateral into segregated accounts at Swiss bank Sygnum, with those balances mirrored back to the exchange for trading. The move makes Bitget the fourth platform to use Sygnum's off-exchange custody service Protect, joining Binance, Deribit and Bybit.
Why It Matters
Using a regulated bank's segregated accounts for client collateral shifts custody of institutional funds off the trading venue while preserving trading access via mirrored balances, a model that can address institutional concerns about custody risk and regulatory compliance. Adoption by multiple major venues indicates growing demand in the crypto market for bank-based custody solutions tailored to institutional counterparties.
Key Facts
- Exchange: Bitget
- Custodian: Sygnum (Swiss bank)
- Custody model: Off-exchange custody with client collateral in segregated accounts, mirrored back to exchange for trading
- Service name: Protect
- Other venues on Protect: Binance, Deribit, Bybit
Bitget has started routing institutional client collateral into segregated accounts held at Swiss bank Sygnum, while maintaining trading access by mirroring those balances back to the exchange. Under this arrangement — offered through Sygnum's Protect service — client funds are kept off the venue's balance sheet in separate accounts at the bank, and equivalent positions or balances are reflected on the trading platform to permit continued market activity.
The Protect solution is an off-exchange custody model designed to separate asset custody from the trading environment. By using segregated client accounts at a regulated bank, the service aims to provide clearer legal separation of client assets and potentially stronger protections compared with custodial arrangements that leave client collateral on an exchange's internal books.
Bitget's adoption makes it the fourth trading venue to integrate with Sygnum Protect; Binance, Deribit and Bybit are already using the service. The sequence of integrations highlights growing interest among derivatives and spot platforms in solutions that combine bank custody with on-exchange trading functionality for institutional clients.
The arrangement does not eliminate on-exchange trading — rather, it keeps the actual collateral at the bank while mirroring balances on the exchange so clients can continue to trade. Sygnum's role as a regulated Swiss bank and the use of segregated accounts are central to the custody model promoted by Protect, which targets institutional counterparties that require bank-grade custody and account separation.