MultiSYG’s maximum loan-to-value ratio is 65%.
Users can also verify whether their collateral remains where it should be, while, if need be, independent keyholders could help restore access to the $BTC, per the companies.
According to them, each client’s collateral “sits in its own dedicated multi-signature wallet” while the signing rules are written into the wallet’s Bitcoin script, so “the Bitcoin network itself rejects any transaction without the required valid signatures.”
Under Swiss banking law, client assets are “held off balance sheet and bankruptcy remote,” meaning the collateral is kept separate from Sygnum’s own assets if the bank fails.
One Secret vs. Multiple Secrets
“A year ago I said borrowers shouldn’t need to trust a custodian blindly. This past year showed why, with one secret often being enough to empty a wallet,” Max Kei, founder and CEO of Debifi, was quoted as saying in the announcement. This year, incidents involving Coldcard and Ledger hardware wallets highlighted potential vulnerabilities in single-signature wallet setups.
Some other bitcoin-backed loan platforms, such as Unchained and BTCBacked, also offer multisig protection, using a simpler 2-of-3 quorum. Meanwhile, Firefish uses 3-of-3 multisig setups in which two keys are held by specialized programs called oracles, while the borrower holds the third.
Bitcoin.com News has contacted Sygnum and Debifi for comment and will update the article if they respond.
