Swiss Bank Enters Crypto Market with $225 Billion Bitcoin and Ethereum Trading Launch

Zürcher Kantonalbank (ZKB), Switzerland’s fourth-largest bank, has recently expanded its services to include trading and custody solutions for Bitcoin and Ethereum, marking a significant stride into the world of cryptocurrencies.

In an official statement, ZKB unveiled its latest offering, allowing its clientele to engage in trading and securely store Bitcoin (BTC) and Ethereum (ETH) effective immediately. While the initial focus is on BTC and ETH, the bank has hinted at potential incorporation of additional digital assets down the line.

The bank emphasized the security and convenience of its cryptocurrency services, affirming, “Bitcoin and Ethereum are available for the time being… Our newly launched offer in the area of cryptocurrencies offers a high level of security and allows the integration of additional currencies.”

To facilitate easy access for customers, ZKB has seamlessly integrated these new services into its existing platforms, namely ZKB Mobile Banking and e-Banking, ensuring a familiar and straightforward user experience. Notably, the bank will handle the secure storage of private keys, removing the necessity for customers to manage their wallets independently.

Furthermore, ZKB’s crypto trading and custody services are not exclusive to its direct customers but are also extended to other Swiss banks. This strategic move enables third-party Swiss banks to provide their clients with crypto trading and custody capabilities through ZKB’s business-to-business (B2B) solution. Notably, Thurgauer Kantonalbank has already partnered with ZKB to leverage this service.

Zürcher Kantonalbank’s venture into the crypto realm is not a standalone initiative but aligns with its broader involvement in the digital asset space. This trajectory began in 2021 with the bank’s participation in issuing the first digital bond on the Zurich-based exchange SIX. Subsequently, ZKB co-led the issuance of digital bonds incorporating central bank digital currency (CBDC) in collaboration with the Swiss National Bank (SNB).

The move by ZKB to incorporate cryptocurrency services underscores the growing interest of traditional financial institutions in digital assets. Switzerland, known for its crypto-friendly regulations, has witnessed several banks embracing cryptocurrencies. For instance, Bank Syz introduced crypto trading and custody services for major cryptocurrencies like Bitcoin, Ethereum, Polygon, and Chainlink in 2022. Similarly, Zuger Kantonalbank ventured into digital assets services, offering trading for six cryptocurrencies, including XRP and BTC.

In conclusion, the foray of Zürcher Kantonalbank into the crypto space reflects a broader trend of traditional financial institutions embracing digital assets, with Switzerland emerging as a hotbed of crypto-friendly banking services.