Infographic 07 · Digital Assets

Off-exchange custody

The post-FTX architecture. The diagram that answers the traditional asset manager's first question about crypto exposure: is it safe?

AMC Summit 2026
Section 5 — Lohberger · Sygnum
Why it matters Risk awareness in crypto spikes after a collapse, then fades as prices rise. This structure holds regardless of the cycle — and it is what makes entry possible for traditional asset managers whose risk frameworks simply cannot accommodate exchange counterparty risk.
Step 01
Custody
BankClient assets — full custody
ExchangeNo assets on the exchange
Client assets are held in full custody at the bank — not on the exchange.
Step 02
Mirror
BankAssets remain in custody
ExchangeMirrored balance for execution
An equivalent balance is mirrored on the exchange for execution. The client trades normally.
Step 03
Exchange failure
BankAssets remain safely held ✓
ExchangeMirror disappears
If the exchange fails, the mirror disappears — the underlying does not.
The FTX lesson, solved structurally
Step 04 · Optional
Yield on idle assets
When assets are not actively trading, Sygnum deploys them into US T-bills or equivalent instruments. The assets work; the protection remains.
Idle assetsUS T-billsMargin returned