Deribit Boosts Security with Sygnum Partnership
Deribit Enhances Institutional Crypto Trading Security with Sygnum Partnership
Deribit, a leading cryptocurrency options and futures exchange, has partnered with Sygnum Bank, a regulated digital asset financial institution, and Fireblocks to significantly improve security for institutional crypto trading. This collaboration introduces a new level of safety and efficiency for institutional investors.
Enhanced Security and Efficiency
The partnership integrates Sygnum Protect, Sygnum Bank's off-exchange custody platform powered by Fireblocks' Off-Exchange solution. This allows institutional investors to:
- Hold assets securely within a regulated bank.
- Trade on Deribit without pre-funding, minimizing exposure to exchange risks.
- Benefit from automated settlement and collateral management, reducing counterparty risk.
This streamlined process offers a capital-optimized trading experience, addressing a major concern for institutional investors in the crypto market.
Addressing Institutional Crypto Challenges
Institutional investors often face hurdles in crypto trading due to concerns about fund security and counterparty risk. The requirement to pre-fund exchange accounts exposes assets to potential loss from exchange insolvency or security breaches. This partnership directly tackles these challenges.
Fireblocks' Off-Exchange service is key. It allows trading on Deribit while assets remain securely custodied with Sygnum, eliminating the need for pre-depositing funds on the exchange.
Boosting Institutional Crypto Adoption
One of the main obstacles to greater institutional adoption of cryptocurrencies is the need to transfer funds to exchanges before trading. This partnership removes this barrier by providing a secure, regulated custody solution. The use of Fireblocks' Multi-Party Computation (MPC) technology further enhances security by enabling non-custodial settlement – funds are only transferred upon trade execution.
Strategic Advantages for All Parties
This collaboration is a significant step for Deribit in attracting a larger institutional client base. For Sygnum, it strengthens its position as a trusted banking partner in the digital asset space. Fireblocks benefits from increased adoption of its Off-Exchange service, solidifying its role as a leading provider of digital asset security.
Codeum's blockchain security expertise complements this enhanced security focus. We offer a range of services, including smart contract audits, KYC verification, custom smart contract and DApp development, tokenomics and security consultation, and partnerships with launchpads and crypto agencies to help secure the future of the blockchain ecosystem.
The partnership between Deribit and Sygnum, leveraging Fireblocks' technology, represents a major advancement in institutional crypto trading security, paving the way for increased participation in the crypto derivatives market and setting a new industry standard.
Disclaimer: This content is for informational purposes only and does not constitute financial advice. Market conditions change rapidly in the cryptocurrency market. Conduct thorough research before making any investment decisions.