Sygnum Bank is launching a new Bitcoin-backed lending initiative in collaboration with Debifi, set to debut in the first half of 2026. This innovative lending tool will allow clients to secure loans in fiat currency by using Bitcoin stored in multisignature wallets as collateral.

The bank emphasizes that clients will maintain shared control over their collateral through a multisignature key approval process, mitigating risks associated with asset rehypothecation. According to Sygnum’s Friday announcement, the offering aims to meet the increasing demand for control of collateral from Bitcoin investors.

“Unlike other banks that require complete custody of Bitcoin for loan approval, MultiSYG’s distributed key management system allows clients to keep verifiable control of their collateral throughout the loan duration,” the bank stated.

Sygnum Bank’s clients will be able to utilize this product right at its launch in 2026.

Bitcoin-Lending Resurgence

Bitcoin-backed loans have seen a resurgence this year. In April, Riot Platforms secured a $100 million credit facility from Coinbase Prime using its BTC reserves as collateral. Moreover, Coinbase Prime has recently granted another $100 million loan to Cleanspark, which was also backed by Bitcoin. A Bloomberg report highlighted that Cantor Fitzgerald issued loans to FalconX and Maple Finance through Bitcoin-backed arrangements in May, underscoring the growing momentum in this sector.