Sygnum Bank has revealed a partnership with Bitcoin-backed lending platform Debifi to roll out a unique multisignature lending product. This service will enable clients to borrow fiat currency using Bitcoin stored in multisignature wallets, slated to launch in the first half of 2026.

This innovative model ensures that borrowers maintain control over their collateral through a system of distributed key management, effectively preventing asset rehypothecation.

Clients will be able to secure fiat loans against Bitcoin, where a transaction will necessitate the authorization from three out of five key holders, allowing for easy tracking and verification of their collateral directly on the blockchain.

“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 emphasized.

The forthcoming product aims to cater to all customers of Sygnum Bank upon its release.

Resurgence of Bitcoin-Backed Loans

The trend of Bitcoin-backed loans has witnessed a resurgence this year. In April, Bitcoin mining firm Riot Platforms utilized its stockpile as collateral to secure a $100 million credit facility from Coinbase Prime. Similarly, Coinbase Prime issued another $100 million loan to mining firm Cleanspark in September, which also secured an additional $100 million credit line backed by its Bitcoin treasury from Two Prime.

Furthermore, a Bloomberg report noted that Cantor Fitzgerald issued Bitcoin-backed loans to FalconX and Maple Finance in May, confirming a facility exceeding $100 million under a comprehensive credit framework by FalconX, while Maple Finance completed its first tranche with Cantor.