TLDR
- Bitget has partnered with Sygnum Bank’s Protect platform for off-exchange custody services.
- Platforms utilizing Protect now represent over 50% of worldwide spot and derivatives trading activity.
- Assets under Protect’s custody surged more than 900% throughout 2025, exceeding $1 billion.
- Client collateral remains in Swiss banking accounts under Sygnum’s control, isolated from Bitget’s corporate finances.
- The exchange is withdrawing from Japan following regulatory warnings from local authorities.
Bitget has partnered with Sygnum Bank’s off-exchange custody solution, Protect. This integration allows institutional market participants on Bitget to store their collateral with a Swiss-regulated financial institution rather than directly with the trading platform.
Sygnum operates as a fully licensed digital asset bank headquartered in Switzerland. Its Protect service provides custody infrastructure designed to maintain client assets independently from cryptocurrency exchange balance sheets.
Following Bitget’s integration, trading platforms connected through Protect now process more than 50% of combined global spot and derivatives volume. This represents a substantial portion of worldwide cryptocurrency trading activity.
Through this arrangement, institutional participants can execute trades on Bitget’s platform while their capital remains secured in Sygnum’s custody infrastructure. The exchange accesses a mirrored representation of these balances for trading purposes.
Understanding the Off-Exchange Custody Model
Assets held through Sygnum benefit from legal segregation under Swiss banking regulations. These funds maintain distinct legal status from Bitget’s corporate assets.
Should Bitget face insolvency or financial distress, client assets stored with Sygnum would remain protected. This structural isolation creates what industry participants call “bankruptcy-remote” protection.
The custody platform accepts multiple collateral types. Eligible assets include bitcoin, ethereum, various stablecoins, and United States Treasury securities.
U.S. Treasuries held in custody can generate interest returns for clients during the custody period. According to Sygnum, this yield-generating capability distinguishes its bank-operated platform from non-banking custody providers.
Protect began operations in April 2024. The platform experienced asset growth exceeding 900% through 2025, with total holdings surpassing the $1 billion threshold.
According to Sygnum, this scale positions Protect as the largest bank-operated custody infrastructure serving crypto exchanges. Other major platforms already integrated with Protect include Binance, Deribit, and Bybit.
Thomas Eichenberger, who serves as deputy group chief executive at Sygnum Bank, noted that off-exchange custody has evolved into essential infrastructure supporting institutional cryptocurrency trading operations.
Gracy Chen, chief executive officer at Bitget, stated that major trading platforms are progressively implementing bank-grade custody solutions. She characterized this as meeting evolving institutional client requirements.
Bitget provides services to more than 125 million registered users spanning over 150 jurisdictions. The platform ranks among the largest exchanges measured by derivatives trading activity.
Withdrawal From Japanese Market
Concurrent with this custody expansion, Bitget is retreating from operations in Japan. The company disclosed in August its intention to terminate services for Japanese-based customers.
Registration capabilities for Japan-based users ceased immediately following the public announcement. Functionality for existing accounts faces restrictions beginning November 1.
The exchange intends to forcibly close all outstanding positions maintained by Japanese customers by December 31. This decision responds to warnings issued by Japan’s Financial Services Agency.
Japanese regulatory authorities raised objections regarding unauthorized operations within their jurisdiction. Officials also requested that application distribution platforms remove access to certain international exchange applications.
Bitget is not the only major exchange implementing this custody framework. Several prominent trading platforms have adopted comparable measures in recent years to isolate customer assets from operational finances.
The transition toward off-exchange custody has developed progressively. Initially, the model attracted primarily risk-averse institutional trading operations.
The approach has since expanded into standard practice among major exchanges. Protect’s substantial growth throughout the previous two years demonstrates this industry-wide shift.
Bitget’s integration with Protect elevates the platform’s representation beyond 50% of global trading volume. This positions it among the most extensively adopted custody frameworks in the cryptocurrency sector.
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