TL;DR: Sygnum and Debifi have launched MultiSYG, a Bitcoin-backed lending service using segregated multisignature wallets. The arrangement spreads control of collateral across several parties, while borrowers remain exposed to the economics of a secured loan.
Sygnum and Debifi launched MultiSYG on October 23, bringing shared control of Bitcoin collateral into the bank’s lending business. Each borrower receives a dedicated wallet with keys distributed among several parties.
In their launch announcement, the companies described a structure involving the client, Sygnum Bank and independent institutional key holders. Transactions require valid signatures under the wallet’s Bitcoin Script rules, so compromising one key would not be enough to move the collateral.
The service arrives as Bitcoin becomes more prominent in Sygnum’s lending book. The bank says the asset now represents more than 80% of pledged collateral volume, compared with 63% in 2023. Those figures describe the bank’s own clients, rather than the entire crypto lending market.
Sygnum’s product information says MultiSYG holdings and movements can be checked on-chain. Its broader lending description says collateral remains client-owned, off the bank’s balance sheet and bankruptcy remote.
That is a more specific proposition than a general promise to keep funds safe. A borrower can examine where the coins sit, while the signing arrangement distributes the authority needed to spend them.
But shared signatures and shared commercial interests are different things. An independent key holder’s role depends on the agreed process. The launch release does not specify the exact signing threshold, interest rate or loan-to-value limit, leaving those details to the product documentation and client agreement.
For readers comparing custody models, this means counting keys alone gives an incomplete picture. Who may authorise a transfer, under which circumstances and through what recovery procedure matters just as much.
The broader lending information describes credit that lets clients obtain fiat liquidity without an immediate sale of their crypto. It says collateral remains client-owned unless a credit event occurs, with continuous risk monitoring and margin management.
The bank also says pledged assets are not rehypothecated. Its general lending terms describe interest accruing daily on the utilised balance and restrict transfers of locked collateral, while allowing access to excess collateral.
These conditions explain why wallet security cannot remove borrowing risk. If collateral falls in value, the lender’s required coverage can become harder to maintain. A borrower may need more collateral or less outstanding debt, regardless of how securely the existing coins are held.
Similarly, obtaining cash without selling on an exchange preserves exposure to future Bitcoin price moves in both directions. The debt and interest bill continue to exist alongside that exposure.
MultiSYG therefore changes the control and visibility of pledged assets. Whether the loan suits a particular treasury still turns on its cash needs, financing cost and ability to respond when collateral values change.
Written by the News Desk and edited by Samuel Rae.
TL;DR: Technical documentation for the proposed LendingProtocolV1_1 amendment describes closed-ended vaults with defined subscription and redemption dates on the XRP Ledger.
XRP Ledger developers have outlined a more structured approach to lending vaults, adding a design that would let some pools run for a fixed period rather than remain permanently open to deposits and withdrawals.
The LendingProtocolV1_1 documentation introduces a VaultKind setting in the VaultCreate transaction. An open-ended vault remains the default, while a second value would identify a closed-ended vault with additional dates controlling when new subscriptions close and when redemption can begin.
Those fields matter for products that need a predictable investment period. Institutional-style lending arrangements often have subscription windows, capital lockups and maturity schedules that are harder to represent using a continuously open pool.
The proposal describes the mechanics of creating such a vault, not the launch of a live lending product. It also does not erase the credit and liquidity risks associated with on-chain lending. A technical standard can define how a position behaves, but it cannot guarantee that a borrower will repay or that a market will remain liquid.
XRPL’s broader lending discussions have attracted attention because they point to potential financial products built directly around ledger-level features rather than solely through external applications.
For now, the important question is whether validators and developers are satisfied with the amendment’s implementation and how any final version would interact with the rest of the network.
Written by the News Desk and edited by Samuel Rae.
Bitcoin Magazine
Beyond HODLing: How Bitcoin-Backed Loans Can Unlock New Financial Opportunities
For long-term Bitcoin holders, accessing capital has traditionally presented a difficult choice: sell a portion of their holdings or leave that value untouched.
Bitcoin-backed lending offers another option, allowing holders to borrow against their Bitcoin while maintaining exposure to the asset.
In a recent video shared on X, SALT Lending highlighted how borrowers can use Bitcoin-backed loans for more than simply accessing cash, outlining several ways liquidity can support broader financial goals.
Bitcoin-backed loan = liquidity without selling.
— SALT (@SALTLending) October 14, 2026
Real estate. Business growth. Diversification.
Keep your long-term position. Put capital to work.
The key is intentionality.#SALT #SALTLending #Bitcoin pic.twitter.com/iZ8xY7oIJG
Rather than selling Bitcoin to fund a major purchase or investment, borrowers can pledge their holdings as collateral to access capital while preserving their long-term position.
One potential use case is real estate. Bitcoin holders looking to purchase property may be able to leverage their holdings for liquidity instead of liquidating Bitcoin to fund the transaction.
Business expansion presents another opportunity. Entrepreneurs and business owners can potentially use Bitcoin-backed loans to fund operations, hire employees, or pursue growth opportunities without selling their Bitcoin or giving up equity in their businesses.
SALT Lending also pointed to investment diversification as another possible application. Borrowers may use loan proceeds to access other markets or investment opportunities while retaining exposure to Bitcoin.
Another consideration is tax planning. Selling appreciated Bitcoin can trigger capital gains taxes, while receiving proceeds from a properly structured loan generally does not constitute a taxable sale. However, individual tax circumstances vary, and borrowing introduces additional financial risks.
The broader takeaway from SALT Lending’s video is that Bitcoin-backed borrowing should be viewed as a financial planning decision rather than simply a way to access cash.
Real estate purchases, business investments, and other opportunities all require borrowers to weigh the potential benefits of liquidity against borrowing costs, repayment obligations, and the risks associated with Bitcoin’s price volatility.
Because Bitcoin-backed loans are secured by a volatile asset, significant price declines can increase loan-to-value ratios and potentially require additional collateral or trigger liquidation, depending on the loan terms.
For borrowers with a clear financial strategy, however, the ability to access capital without immediately selling Bitcoin creates another avenue for putting their holdings to use.
SALT Lending provides Bitcoin-backed lending solutions designed to help eligible borrowers access liquidity while maintaining their long-term Bitcoin exposure.
As Bitcoin continues to evolve beyond an asset primarily associated with buying and holding, lending may play an increasingly important role in how holders manage their finances and pursue opportunities without necessarily selling their Bitcoin.
SALT Lending is the Official Liquidity Sponsor of BMTV. Learn more about borrowing against your bitcoin and explore SALT’s BMTV offer at https://saltlending.com/bmtv/?utm_source=bmtv&utm_medium=article&utm_campaign=52783658-BMTV%20article&utm_term=BMTV.
Disclaimer: SALT Lending is a paid sponsor of BMTV and serves as BMTV’s Official Liquidity Sponsor. This article is sponsored content and does not necessarily reflect the views or opinions of Bitcoin Magazine. The information provided is for promotional purposes and should not be considered financial advice. Readers are encouraged to conduct their own research before making any investment decisions related to Bitcoin or other financial products mentioned herein.
This post Beyond HODLing: How Bitcoin-Backed Loans Can Unlock New Financial Opportunities first appeared on Bitcoin Magazine and is written by Josh Plischke.
Bitcoin Magazine
Kalshi Pushes Deeper Into Crypto Derivatives With Bitcoin-Backed Margin Loans
Kalshi is doubling down on its bid to become the regulated U.S. home for crypto perpetual futures, pairing a new bitcoin-backed lending arrangement with digital-asset custodian BitGo alongside a distribution deal that will put its perpetual contracts in front of Webull’s more than 6 million customers.
Bloomberg first reported Wednesday that customers of Kalshi Prime, the company’s U.S.-registered futures commission merchant, will be able to borrow against digital assets held at BitGo and use the proceeds to fund margin positions on perpetual futures traded on Kalshi’s main exchange.
Under the tri-party structure, loans will be issued by Kalshi Katalyst, a lending affiliate of Kalshi Prime, and secured against assets held at BitGo Bank & Trust, the firm’s federally chartered trust bank.
Eligible collateral will include bitcoin, ethereum and stablecoins deemed compliant with the GENIUS Act, with additional custodians expected to join Kalshi’s network over time.
Prime CEO Jeff Bandman told the outlet the product was designed with crypto-native traders in mind, including those already active on unregulated offshore perpetuals venues and large holders who would rather not sell their bitcoin to fund futures positions.
He also pointed to unexpected demand from businesses, such as Latin American firms that run their operations on U.S. dollar stablecoins.
The move targets a segment where the company has acknowledged a structural disadvantage against Polymarket, its offshore, blockchain-based rival, which has long catered to crypto whales and trading firms that prefer to keep their capital in digital assets. The two platforms have been racing to build out perpetuals since the spring.
The BitGo arrangement landed a day after Webull announced Tuesday that eligible U.S. customers will be able to trade perpetual futures on its platform beginning in November, starting with bitcoin and a handful of other crypto assets.
The contracts will trade on KalshiEX LLC, Kalshi’s CFTC-regulated designated contract market, and clear through Kalshi Klear LLC, its derivatives clearing organization. Access will initially be limited to customers already approved for futures trading through existing Webull Futures accounts, with broader availability expected before year-end.
Webull Group President and U.S. CEO Anthony Denier said in the company’s release that perpetual futures saw more than $90 trillion in global volume in 2025 and that American investors should be able to access them through a regulated platform.
These two announcements extend a product buildout for the company, which secured CFTC clearance for the first U.S.-regulated bitcoin perpetual in late May and went live with the contract in early June, before adding gold and silver perpetuals in September and a US500 stock index perpetual earlier this month.
The expansion comes amid mounting state-level legal pressure, with Utah becoming the latest state to sue Kalshi on Monday over what it alleges is illegal sports gambling, following New York’s similar action against Polymarket last month.
This post Kalshi Pushes Deeper Into Crypto Derivatives With Bitcoin-Backed Margin Loans first appeared on Bitcoin Magazine and is written by Micah Zimmerman.
TL;DR: Technical documentation for the proposed LendingProtocolV1_1 amendment describes closed-ended vaults with defined subscription and redemption dates on the XRP Ledger.
XRP Ledger developers have outlined a more structured approach to lending vaults, adding a design that would let some pools run for a fixed period rather than remain permanently open to deposits and withdrawals.
The LendingProtocolV1_1 documentation introduces a VaultKind setting in the VaultCreate transaction. An open-ended vault remains the default, while a second value would identify a closed-ended vault with additional dates controlling when new subscriptions close and when redemption can begin.
Those fields matter for products that need a predictable investment period. Institutional-style lending arrangements often have subscription windows, capital lockups and maturity schedules that are harder to represent using a continuously open pool.
The proposal describes the mechanics of creating such a vault, not the launch of a live lending product. It also does not erase the credit and liquidity risks associated with on-chain lending. A technical standard can define how a position behaves, but it cannot guarantee that a borrower will repay or that a market will remain liquid.
XRPL’s broader lending discussions have attracted attention because they point to potential financial products built directly around ledger-level features rather than solely through external applications.
For now, the important question is whether validators and developers are satisfied with the amendment’s implementation and how any final version would interact with the rest of the network.
Written by the News Desk and edited by Samuel Rae.
XRP Ledger validators are advancing a maintenance amendment while the network’s proposed native lending features face a more complicated path through governance.
TL;DR: The fixCleanup3_4_0 amendment has cleared the 80% support threshold in recent validator snapshots, beginning the sustained-consensus period required for activation. The separate lending amendments have not reached the same level.
The cleanup package addresses technical issues around several XRPL features, including vault and lending-related logic. That may sound routine, but enabling complex financial functions directly in a blockchain’s rules creates little room for improvisation once the code is live. Validators need confidence that edge cases are resolved before activation.
XRPL amendments require support from more than four-fifths of a server’s trusted validator list over a sustained period. A temporary majority is not enough. Recent published snapshots showed fixCleanup3_4_0 over the line and pointed toward a possible late-October activation if that support continues.
Meanwhile, native lending is still a separate matter. The presence of code in a server release does not mean the lending protocol is available for users, and the cleanup amendment should not be mistaken for a vote approving the entire feature set.
This difference can be frustrating for investors focused on new products, but it is an intentional part of the ledger’s upgrade process. Validators are effectively being asked to approve changes to shared financial infrastructure that every participant must respect.
The immediate milestone to watch is whether the cleanup amendment maintains its necessary voting support for the full activation window. Lending will require its own consensus outcome.
Written by the News Desk and edited by Samuel Rae.
TL;DR: Babylon Labs has advanced a proposal to bring native Bitcoin collateral to Aave V4 without requiring wrapped BTC or a central custodian. The plan still faces community review, risk analysis and governance votes.
Bitcoin could become collateral for Aave loans without first being handed to a custodian or converted into a freely traded wrapped token. That is the proposal Babylon Labs took to Aave’s governance forum on October 14, advancing a project that has been under discussion since an earlier temperature check.
The design uses Trustless Bitcoin Vaults. A user locks BTC into a Taproot-based arrangement on the Bitcoin network, while Aave V4 records restricted collateral units inside a dedicated lending market. Those accounting units are not intended to circulate like ordinary wrapped Bitcoin.
The attraction is clear: holders could borrow stablecoins against their BTC while the underlying coins remain governed by Bitcoin-side spending conditions. Aave’s proposed hub-and-spoke design is intended to isolate the market’s particular risks instead of mixing them with every other collateral asset.
But it would be premature to call the integration approved. The current Aave Request for Comment is a governance stage, not a live borrowing product. Risk parameters, community support, a Snapshot vote and an eventual on-chain proposal remain ahead.
Forum participants have already raised technical questions about emergency pauses and who controls parts of the vault infrastructure. Those details matter in lending, where the ability to release or liquidate collateral can become critical during market stress.
For now, this is a serious attempt to connect Bitcoin liquidity with Ethereum-style lending, with the hardest operational questions still being worked through in public.
Bitcoin Magazine
Why Bitcoin’s Liquidity Advantage Matters as Institutions Move In
Bitcoin’s portability, divisibility and accessibility could increasingly distinguish it from traditional stores of value as more institutions enter the market, according to SALT Lending CEO and Co-Founder Shawn Owen.
Speaking on BMTV, Owen pointed to Bitcoin’s resilience while gold and other long-duration assets sold off, arguing that some of Bitcoin’s most basic characteristics give it advantages over competing assets.
“It is easier to buy Bitcoin than gold,” Owen said.
That advantage becomes even more apparent when mobility matters.
“It’s easier to move Bitcoin out of, say, somewhere where you need to leave quickly because there’s unrest in the area than gold,” Owen said. “It’s far more portable and divisible and easy to use than real estate.”
SALT CEO Shawn Owen (@Shawn_OwenJ) on why Bitcoin held up while gold and other long duration assets sold off:
— BMTV (@watchbmtv) October 7, 2026
"It is easier to buy Bitcoin than gold."
"It's easier to move Bitcoin out of, say, somewhere where you need to leave quickly because there's unrest in the area than… pic.twitter.com/YQ9KGauue8
Gold, real estate and bitcoin can all serve as long-term stores of value, but accessing and moving that value looks very different.
Physical gold requires storage and transportation. Real estate is tied to a specific location and can take time to buy or sell. Bitcoin can be transferred globally and divided into small units without those same physical constraints.
Those characteristics can also give Bitcoin holders more flexibility when they need liquidity.
Rather than selling bitcoin to access dollars, holders can potentially use it as collateral and borrow against its value while maintaining exposure to the underlying asset.
That model becomes particularly relevant if Owen’s longer-term outlook for Bitcoin adoption proves correct.
Owen believes the experience many individual Bitcoin holders have already gone through, discovering Bitcoin and wishing they had gotten involved earlier, may eventually play out among much larger institutions.
“Every human goes through this experience where you learn about Bitcoin and wish you’d been earlier,” Owen said. “I think that will be true of sovereigns and banks and institutions of all sizes.”
Banks have taken considerably longer to enter the market, but Owen believes that is beginning to change as many of the hurdles surrounding Bitcoin have been addressed.
“Banks have been slow, but are now getting in after all the boxes have been checked,” he said. “FOMO is real.”
JUST IN: Salt Lending CEO says sovereign wealth funds and banks are realizing the importance of Bitcoin
— Bitcoin Magazine (@BitcoinMagazine) October 7, 2026
"Every human goes through this experience where you learn about Bitcoin and wish you'd been earlier…I think that will be true of sovereigns and banks of all sizes."
Owen cautioned that adoption and price appreciation will not necessarily happen in a straight line. As Bitcoin matures and more capital enters the market, he expects some dampening of its historic volatility.
That does not change his longer-term outlook.
“Adoption depends on the time horizon we’re talking about,” Owen said. “Dampening of volatility, and we will continue to see that, but that doesn’t mean over the next decade we won’t see serious adoption and increase in price.”
That long-term view also shapes how Owen thinks holders should approach their bitcoin.
“I have always said never sell your bitcoin,” Owen said. “Long term we will continue to see prices increasing significantly in comparison to fiat currencies.”
For holders who share that outlook, selling bitcoin to cover a large purchase, business expense or other liquidity need means giving up future exposure to the bitcoin they sell.
Bitcoin-backed lending provides an alternative.
SALT allows eligible borrowers to use bitcoin as collateral to access cash without selling the underlying bitcoin. Once the loan is repaid, the collateral is returned to the borrower.
The model aligns closely with Owen’s broader thesis. If Bitcoin continues becoming easier to access and more widely adopted by banks, institutions and potentially sovereigns, long-term holders may become increasingly reluctant to sell simply because they need liquidity.
Instead, they can potentially maintain their bitcoin position while accessing the value stored within it.
As Bitcoin adoption expands, the conversation may increasingly move beyond how to acquire bitcoin and toward how holders can use the wealth they have accumulated without necessarily selling the asset.
SALT Lending is the Official Liquidity Sponsor of BMTV. Learn more about borrowing against your bitcoin and explore SALT’s BMTV offer at https://saltlending.com/bmtv/?utm_source=bmtv&utm_medium=article&utm_campaign=52783658-BMTV%20article&utm_term=BMTV
Disclaimer: SALT Lending is a paid sponsor of BMTV and serves as BMTV’s Official Liquidity Sponsor. This article is sponsored content and does not necessarily reflect the views or opinions of Bitcoin Magazine. The information provided is for promotional purposes and should not be considered financial advice. Readers are encouraged to conduct their own research before making any investment decisions related to Bitcoin or other financial products mentioned herein.
This post Why Bitcoin’s Liquidity Advantage Matters as Institutions Move In first appeared on Bitcoin Magazine and is written by Josh Plischke.
Bitcoin Magazine
Shawn Owen: Bitcoin’s First Institutional Cycle Has Arrived
Banks and credit unions are racing to adopt Bitcoin, and SALT Lending CEO Shawn Owen says the FOMO is real. In this interview, Shawn Owen joins Grace Remington and Sean Hagan to talk about Bitcoin as pristine collateral, compressing volatility, and why institutions can no longer ignore Bitcoin. He explains how the barriers holding back banks and registered investment advisors have finally come down. If you want to understand where Bitcoin-backed lending is headed, this conversation is a must-watch.
Chapters:
0:00 – SALT Lending CEO Shawn Owen on Bitcoin Volatility and Loan-to-Value
1:38 – Bitcoin as Pristine Collateral for Banks and Wealth Advisors
3:20 – Why Credit Unions and Banks Have Bitcoin FOMO
4:38 – Dampening Volatility and Bitcoin’s Long-Term Upside
6:16 – Bitcoin vs. Real Estate for Younger Generations
7:21 – Building a Secondary Market for Bitcoin-Backed Loans
8:56 – Bitcoin Regulation, the Clarity Act and Stablecoins
10:31 – Bitcoin Strength as Bonds and Gold Sell Off
13:11 – How Bitcoin ETFs Changed SALT’s Borrower Base
15:40 – Never Sell Your Bitcoin: When to Borrow Instead
DISCLAIMER: The views and opinions expressed in this show are those of the participants and do not necessarily reflect the official policy or position of BTC Inc., Bitcoin Magazine, or any affiliated entities. This content is provided for informational and educational purposes only and should not be construed as investment, legal, tax, or accounting advice. Nothing contained in this show constitutes a solicitation, recommendation, endorsement, or offer to buy or sell any securities or financial instruments. Viewers should consult their own advisors before making financial or business decisions.
This post Shawn Owen: Bitcoin’s First Institutional Cycle Has Arrived first appeared on Bitcoin Magazine and is written by Patrick Green.
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