Keeping Crypto Assets Safe with Sygnum and Deribit
In the fast-changing world of cryptocurrency, keeping your investments safe is super important. Recently, a big hack at Bybit showed us that we need strong ways to store and protect our crypto[2]. Now, Sygnum, a top digital asset bank, has joined forces with Deribit, the world’s biggest crypto derivatives exchange, to make your crypto trading safer[1]. They’re using a cool technology called “Off Exchange” from Fireblocks to let you keep your assets in a regulated bank while trading on Deribit.
How Sygnum Protects Your Assets
Sygnum’s off-exchange custody platform, Sygnum Protect, helps to reduce risks when trading crypto. It keeps your assets safe by:
- Bank-Grade Security: Your assets are stored in a bank with strong security measures to protect against hackers[1].
- Off-Balance Sheet Custody: Your assets are kept separate from the bank’s money, so you won’t lose them if the exchange goes bust[1].
- Flexible Collateral Options: You can use different types of assets as collateral, like money, crypto, or stocks, to make trading easier[1].
How Fireblocks’ “Off Exchange” Service Works
The partnership with Fireblocks lets Sygnum and Deribit use the “Off Exchange” service. This means you can:
- Mirror Your Assets: Show your assets on Deribit’s platform without actually moving them from Sygnum’s safe custody[2][3].
- Trade Without Pre-Funding: You don’t have to put money into your exchange account before trading, which reduces the risk of losing your assets if the exchange has problems[2][3].
- Keep Assets Separate and Safe: Fireblocks’ technology ensures your assets stay separate and secure in shared wallets, with extra protection against fraud and bankruptcy[1].
Why This Is Great for Professional Traders
By using Sygnum Protect and Fireblocks’ “Off Exchange” service, professional traders can:
- Access Deep Liquidity: Trade on Deribit’s platform with over $1 trillion in trading volume in 2024, without worrying about your assets’ safety[2].
- Reduce Counterparty Risk: Keep your assets off the exchange to avoid losing them if the exchange goes bankrupt[1].
- Have More Control: Keep your assets in custody while trading on the exchange, giving you more control over your investments[3].
A New Way to Keep Your Crypto Safe
The partnership between Sygnum, Deribit, and Fireblocks is a big step forward in keeping your crypto assets safe. It gives professional traders a new way to manage risks and stay secure while trading. As the crypto world keeps changing, more collaborations like this will help us stay safe and trade with confidence.
Sources: Sygnum, TradingView, ChainCatcher, PaneWSLab, Followin