Bitget Partners With Sygnum for Off-Exchange Institutional Custody
(8 days ago) · 1 source · Summarized by CryptoBipto
Crypto exchange Bitget has announced it is moving institutional collateral to Sygnum's off-exchange custody solution. The arrangement is designed to allow institutional clients to trade on Bitget while their assets are held separately by Sygnum, a regulated digital asset bank.
WHY IT MATTERS
When you trade on a crypto exchange, you typically have to deposit your funds onto that platform. This means the exchange holds your assets, creating what is called 'counterparty risk' — the risk that something goes wrong with the exchange and you lose access to your money. Think of it like leaving cash at a store rather than in a bank vault. Off-exchange custody is a solution where a separate, independent company — in this case Sygnum, a regulated bank — holds the assets instead. The trader can still use those assets as collateral (a deposit that guarantees they can cover their trades), but the assets sit with the custodian rather than on the exchange. This approach became more popular after the FTX collapse showed how risky it can be when exchanges control client funds directly.
Read the full analysis with a CryptoBipto membership
Members can read the full analysis of every story, not just the headline.
Get startedSOURCES
- thedefiant.io
RELATED
Learn the concepts behind this
Clear explanations of the subjects this article touches, with every term defined.
- How do crypto scams work, and how do you avoid them?The common crypto scams and attacks explained in simple terms — phishing, rug pulls, Ponzi schemes, market manipulation — and the risks worth checking before you act.
- How do you buy cryptocurrency safely?How crypto exchanges, verification, on-ramps and order types work, so you understand each step of a first purchase before you make one.