A growing market for bitcoin-backed, multisig-secured loans now has what appears to be its first bank offering this type of product, as Sygnum and Debifi delivered on a promise made a year ago.
Key Takeaways
- Sygnum and Debifi launched MultiSYG, a bitcoin-backed loan product secured by a multisig wallet.
- The product appears to be the first of its kind offered by a regulated bank.
- The partners say collateral is held in dedicated multisig wallets, with signing rules enforced by Bitcoin script.
Switzerland-headquartered digital asset bank Sygnum and Latvian bitcoin lending platform Debifi launched MultiSYG, a loan product that secures collateral in a multisig wallet. Similar products already exist, but this appears to be the first time a regulated bank has offered this type of loan to bitcoin holders. Announced a year ago, the product was slated to debut in the first half of 2026. At the time of writing, Sygnum advertised the product on its website, but it was not yet available for use.
Script and Legal Protection
With a MultiSYG loan, the borrower’s collateral sits in a multisig wallet, with keys distributed among the client, Sygnum, and, due to confidentiality and security policies undisclosed independent institutional keyholders.
The bank told Bitcoin.com News that the setup would use a 3-of-5 multisig, meaning at least three signatures would be required to move the funds. A borrower would have one key. According to Sygnum, if collateral is liquidated after a margin call, the liquidation transaction would be signed by the bank and other parties.
MultiSYG’s maximum loan-to-value ratio is 65%.
Users can also verify whether their collateral remains where it should be, while, if need be, independent keyholders could help restore access to the BTC, per the companies.
According to them, each client’s collateral “sits in its own dedicated multi-signature wallet” while the signing rules are written into the wallet’s Bitcoin script, so “the Bitcoin network itself rejects any transaction without the required valid signatures.”
Under Swiss banking law, client assets are “held off balance sheet and bankruptcy remote,” meaning the collateral is kept separate from Sygnum’s own assets if the bank fails.
One Secret vs. Multiple Secrets
“A year ago I said borrowers shouldn’t need to trust a custodian blindly. This past year showed why, with one secret often being enough to empty a wallet,” Max Kei, founder and CEO of Debifi, was quoted as saying in the announcement. This year, incidents involving Coldcard and Ledger hardware wallets highlighted potential vulnerabilities in single-signature wallet setups.
Some other bitcoin-backed loan platforms, such as Unchained and BTCBacked, also offer multisig protection, using a simpler 2-of-3 quorum. Meanwhile, Firefish uses 3-of-3 multisig setups in which two keys are held by specialized programs called oracles, while the borrower holds the third.
Bitcoin.com News has contacted Sygnum and Debifi for comment and will update the article if they respond.