One of Switzerland’s leading banking institutions, Zurich Cantonal Bank (ZKB), has initiated crypto brokerage services for its clients.
The bank has partnered with Crypto Finance AG, a German multinational Deutsche Börse Group subsidiary, to facilitate cryptocurrency transactions.
In an official press release on September 4, ZKB announced that it now provides trading and custody services for Bitcoin and Ethereum.
ZKB to Integrate New Services into Existing Banking Channels
ZKB stated that the new services are seamlessly integrated into the existing banking channels, ensuring that individual clients and third-party banks have simple access.
ZKB’s eBanking and mobile banking platforms now enable customers to trade cryptocurrencies around the clock.
The bank emphasized that the customer’s overall portfolio view will include cryptocurrency holdings, thereby streamlining asset management within their conventional banking services.
“Alexandra Scriba, ZKB’s head of institutional clients, stated that our recently introduced cryptocurrency offering provides a high level of security and enables the integration of other currencies and applications.”
She clarified that ZKB will assume responsibility for the secure storage of private keys on behalf of its clients.
“Therefore, customers and third-party banks are relieved of the responsibility of storing their private keys, as they do not require their wallet.” ZKB manages both.
ZKB is now in alignment with other forward-thinking Swiss institutions by providing crypto services to satisfy the growing demand for digital finance services.
The bank’s crypto brokerage service is accessible to third-party financial institutions and its customers.
ZKB has partnered with Thurgauer Kantonalbank, another Swiss cantonal bank, to provide crypto trading and custody services to its clients as part of its business-to-business (B2B) solution.
ZKB Resumes Push into Crypto
ZKB’s entry into the cryptocurrency market differs from its initial foray into blockchain technology.
In 2021, ZKB issued the world’s first digital bond on the SIX Digital Exchange. Subsequently, in 2023, the bank was instrumental in issuing digital bonds that utilized central bank digital currency (CBDC) as part of a Swiss National Bank pilot project.
The decision to provide crypto services is perceived as a component of a broader trend among Swiss banks, as other institutions, such as Zuger Kantonalbank, St. Galler Kantonalbank, and Luzerner Kantonalbank, have already implemented comparable services.
In April, a group of Bitcoin enthusiasts based in Switzerland attempted to persuade the Swiss National Bank (SNB) to incorporate Bitcoin into its reserves.
They petitioned to instigate a referendum to amend the country’s constitution. This would necessitate the collection of more than 100,000 signatures from Swiss citizens.
Western Europe has become a prominent region in global crypto adoption, attracting many daily traders, with a range of 1.2 million to 1.5 million individuals, as previously reported.
Austria has experienced the most significant annual growth, with a remarkable 70% rise in users, while Germany and France are at the forefront of activity in the region.