The Zurich Cantonal Bank (ZKB), the fourth largest bank in Switzerland based in Zurich, has officially launched trading and custody services for Bitcoin and Ethereum.
Let’s see all the details below.
The bank of Zurich ZKB expands its offer with Bitcoin and Ethereum
The cryptocurrency sector is rapidly gaining ground within traditional financial institutions, and the Zurich Cantonal Bank (ZKB) is no exception.
On September 4, 2024, ZKB, one of the main Swiss banks, announced the official launch of its trading and custody services for cryptocurrencies. This strategic move allows the bank to expand its offering.
In particular, including the possibility for customers to buy, sell, and store Bitcoin (BTC) and Ethereum (ETH) directly from their already existing digital platforms, such as ZKB eBanking and ZKB Mobile Banking.
The initiative of the ZKB represents an important step forward for the adoption of cryptocurrencies in the Swiss banking system.
The decision to offer these new services did not come unexpectedly, as the bank has shown a growing interest in blockchain technology in recent years.
In 2021, ZKB participated in the issuance of the world’s first digital bond on the SIX Digital Exchange.
Furthermore, in 2023, he played a leading role in a pilot project of the Swiss National Bank for the issuance of digital bonds with central bank digital currency.
The new offer from ZKB has been seamlessly integrated into the bank’s existing digital platforms.
Clients can now access cryptocurrency markets with the same ease with which they manage their traditional bank accounts.
This was made possible thanks to the partnership with Crypto Finance AG, a subsidiary of Deutsche Börse Group, which will handle cryptocurrency operations on behalf of the bank.
One of the most innovative aspects of ZKB’s offer is that customers will not need to manage their own cryptocurrency portfolio or worry about the storage of private keys.
The bank will take care of both processes, ensuring security and convenience for its users.
Integration with existing platforms
Alexandra Scriba, head of institutional and multinational clients at ZKB, emphasized that this solution allows clients to access the cryptocurrency market without having to deal with the technical complexities often associated with this type of investment.
In any case, the entry of ZKB into the world of cryptocurrencies is not limited only to its retail customers.
The banca has developed a business-to-business (B2B) solution that allows other Swiss banche to offer trading and custody services for cryptocurrencies to their clients.
This collaborative approach allows ZKB to extend its influence in the cryptocurrency market, also supporting other financial institutions in their journey towards the adoption of this new asset class.
A significant example of this collaboration is the Banca Cantonale di Turgovia, which has become the first partner bank to adopt the crypto services offered by ZKB.
This partnership represents a model for future collaborations within the Swiss banking system, where the integration of crypto services could become increasingly common.
ZKB and the future of cryptocurrencies in Switzerland
The initiative of ZKB is part of a broader context of growing interest in cryptocurrencies among Swiss financial institutions.
Switzerland, already known for its environment favorable to financial innovation, is seeing an increase in banks exploring the potential of cryptocurrencies and blockchain technology.
For example, at the end of June 2024, the bank Sygnum, based in Zurich, extended its business-to-business services to over 20 entities, including PostFinance, ZugerKB, and LuzernerKB.
Making the cryptocurrency markets accessible to a large portion of the Swiss population as a result.
These moves are indicative of a trend in which cryptocurrencies are becoming an integral part of the Swiss financial landscape, with a growing number of institutions seeking to offer these services to their clients.
The launch of cryptocurrency trading and custody services by ZKB represents a significant step towards the integration of cryptocurrencies into the traditional Swiss banking system.
With its solid infrastructure and collaboration with prominent technology partners, ZKB is well positioned to become a leader in this sector
For customers, this offer represents an opportunity to access the cryptocurrency markets with the security and trust that only a large financial institution can offer.
For the other Swiss banks, ZKB’s B2B solution paves the way for new business opportunities. Allowing them to enter the cryptocurrency market without having to develop their own infrastructure from scratch.
