Sygnum Bank has teamed up with the Bitcoin-backed lending platform Debifi to unveil a multisignature lending service that enables clients to maintain shared authority over their collateral.

The bank from Switzerland revealed this new offering in an announcement made on Friday, highlighting a Bitcoin-native multisignature lending model that ensures borrowers have control of their collateral through a decentralized key management system, preventing assets from being rehypothecated.

Clients will be able to withdraw fiat loans secured by Bitcoin, requiring approval from three out of five key holders to authorize any transaction, thus allowing borrowers to monitor and verify their collateral on-chain.

“While other banks require full custody for Bitcoin-backed loans, MultiSYG’s distributed key management means clients retain verifiable control of their collateral throughout the loan term – a growing demand from Bitcoin investors,” the bank stated.

The new product is set to launch in the first half of 2026 and will be accessible to all customers of Sygnum Bank.

Bitcoin-Backed Loans are Making a Comeback

Bitcoin-backed loans have regained traction in 2023. In April, Riot Platforms, a Bitcoin mining firm, used its holdings as collateral to secure a $100 million credit line with Coinbase Prime. Similarly, Coinbase Prime extended another $100 million loan to Cleanspark in September, and the company obtained an additional $100 million credit line backed by its Bitcoin reserves from Two Prime within the same month.

In May, reports emerged indicating that Cantor Fitzgerald had provided Bitcoin-backed loans to FalconX and Maple Finance, with FalconX confirming a credit facility over $100 million, while Maple Finance finalized the first part of its agreement with Cantor.