Keeping Crypto Safe: Sygnum and Deribit Team Up
In the fast-changing world of cryptocurrency, keeping your digital money safe is super important. Recent big hacks, like the $1.4 billion theft from Bybit, show us that we need strong ways to store and protect our crypto[2]. So, Sygnum, a big player in digital asset banking, has expanded its safe storage service, Sygnum Protect, to work with Deribit, the world’s largest crypto trading platform[1]. They’re using a cool technology from Fireblocks to make this happen[2][3].
How Sygnum Protect Keeps Your Crypto Safe
Sygnum Protect helps to reduce risks when you trade crypto. It keeps your assets separate from the trading platform, so they’re safer if something goes wrong with the exchange[1]. This is especially important for big traders who deal with lots of money. Here’s how it works:
Key Features
- Bank-Level Security: Your crypto is stored in a safe, regulated bank environment, with strong protection against cyber attacks[1].
- Separate Storage: Your assets are kept off the bank’s balance sheet, so they’re less likely to be lost if the exchange has problems[1].
- Flexible Collateral: You can use different types of assets, like regular money, crypto, or stocks, as collateral for your trades[1].
Working with Fireblocks’ “Off Exchange” Service
The partnership with Fireblocks lets Sygnum and Deribit use the “Off Exchange” service. This means you can mirror your assets stored with Sygnum on Deribit’s platform, so you can trade without having to put money into your exchange account first[2][3]. This reduces the risk of your assets being stolen or lost if the exchange has problems. Fireblocks’ technology keeps your assets safe and separate, and on-chain settlement adds another layer of protection[1].
Benefits for Big Traders
- Lots of Trading Options: You can access Deribit’s big trading pool, with over $1 trillion in trading volume in 2024, without worrying about your assets[2].
- Reduced Risks: By keeping your assets off the exchange, you’re less likely to lose them if the exchange has problems[1].
- More Control: You have more control over your assets because they stay in safe storage while you trade[3].
Conclusion: A New Way to Keep Crypto Safe
The partnership between Sygnum, Deribit, and Fireblocks is a big step forward in keeping crypto safe. It gives traders a way to protect their assets while still being able to trade. As the crypto world keeps changing, collaborations like these will help make trading safer[1][2][3].
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