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 assets→US T-bills→Margin returned