Switzerland is considered a global financial center and ZKB's entry into the world of cryptocurrencies highlights demand for these assets.
Switzerland
Zürcher Kantonalbank (ZKB), one of Switzerland’s largest banks, has started offering trading and custody of Bitcoin and Ethereum, the two largest cryptocurrencies on the market. The announcement was published on Wednesday (4).
According to Alexandra Scriba, head of Institutional and Multinational Clients at ZKB, the arrival of cryptocurrencies is a demand from some of the bank's clients.
“As a universal bank, we are committed to serving our customers on financial matters that are relevant to them, allowing them to trade cryptocurrencies with us in addition to traditional securities,” Scriba highlighted.
The executive says that ZKB believes that digital assets will gain importance in the coming years. In other words, this existing demand is expected to continue to increase.
ZKB will start with Bitcoin and Ethereum, but may expand coin offering
Despite only just beginning to offer cryptocurrency custody and trading services, Zürcher Kantonalbank (ZKB) is keen to point out that it is no newcomer to the market. That’s because the Swiss bank was already a participant in SIX Digital Exchange (SDX), one of the world’s first fully regulated digital trading platforms.
While there are thousands of cryptocurrencies, ZKB chose to start with the two largest, but says it is prepared to meet new customer demands.
“There are many different cryptocurrencies. We limited ourselves to the most popular ones, namely Bitcoin and Ethereum.”
“These are by far the most important cryptocurrencies, both in terms of number of transactions and market value,” said Alexandra Scriba, CEO of ZKB. “Bitcoin and Ethereum can be safely traded and held in custody. Depending on how clients’ needs develop, we will examine the possibility of expanding the offering.”
Today these two coins represent 56.2% and 14.6%, respectively, of the total cryptocurrency market value, currently at $2 trillion.
Bitcoin and Ethereum are the two largest cryptocurrencies on the market, accounting for more than 70% of the total market value of these assets. Source: CoinMarketCap.
In any case, the bank emphasizes that its services will also serve other banks that want to enter the world of cryptocurrencies. In other words, it will also work as a B2B (business to business).
Swiss bank says security and convenience are essential when buying and selling cryptocurrencies
Speaking of banks, many believe that there are limitations on opening hours, something that would go against the idea of cryptocurrencies, which operate 24/7. However, Zürcher Kantonalbank (ZKB) highlights that its customers will be able to trade Bitcoin and Ethereum at any time of the day.
“Cryptocurrency orders made through ZKB eBanking or ZKB Mobile Banking are executed immediately,” the bank executive highlighted, noting that the rule only does not apply “if the trading order is made through another channel, such as by telephone.”
“The Zürcher Kantonalbank offers its customers everything in an integrated manner: trading, custody and a complete overview of all traditional and digital assets.”
Finally, Scriba emphasizes that “secure custody has always been our priority”, making its services a good option for those who do not want to deal with private keys and self-custody.
Although Bitcoin was born with the idea of being a competitor to traditional financial services, it is increasingly common for banks and other institutions of the sort to adopt cryptocurrency in their services. As the saying goes, if you can't beat it, join it.
