The Zurich Cantonal Bank has recently initiated the trading of Bitcoin and Ethereum through its online banking platform and application.
Zurich Cantonal Bank (ZKB) has elected to permit its retail consumers and third-party institutions to engage in Bitcoin and Ethereum trading through its eBanking platform and app.
The bank collaborated with Crypto Finance, which is licensed by both Switzerland’s FINMA and Germany’s BaFin, to initiate this process. In addition, ZKB has implemented its own crypto custody system and is collaborating with Fireblocks to guarantee it functions seamlessly.
The Canton of Zurich owns ZKB, the largest cantonal bank in Switzerland, and it is one of the top four banks in the country. As a result of its substantial assets and the AAA ratings from Fitch, Moody’s, and S&P, it was able to secure the second-safest bank globally in 2023.
While Switzerland has historically been a welcoming environment for cryptocurrency, it is not an effortless endeavor to enter this sector. The Swiss financial authority, FINMA, maintains a strict control over cryptocurrency businesses.
Depending on the nature of their work, they must obtain specific licenses. There are a variety of licenses available, including a Fintech license that enables firms to manage deposits of up to CHF 100 million without incurring interest, and a full Banking License that permits unlimited deposits. Additionally, a DLT Trading Facility License is available for the trading of digital securities.
The Swiss government is consistently adjusting the regulations to ensure that they are consistent with international policies, particularly in light of the EU’s recent crypto regulations.
ZKB is not the first significant Swiss bank to provide crypto services. PostFinance has already accomplished this by collaborating with Sygnum Bank earlier this year.
According to a recent report, the combined valuation of the top 50 blockchain companies in Switzerland and Liechtenstein is $373.45 million. From $85 million at the conclusion of the previous year, this represents a substantial increase.
Currently, Switzerland is home to 1,244 blockchain and crypto companies. Zug, which is renowned as the “Crypto Valley,” is home to 512 of them, while Zurich has 289. Geneva and Ticino are also closing up.
“Additionally, Switzerland is investigating various applications of blockchain technology. We are discussing a wide range of topics, including the provision of tokenization services that convert real-world assets into digital ones and the exchange of digital currencies.”
In addition, there is an emphasis on custodial services, which are designed to securely store crypto and decentralized finance (DeFi) applications that operate independently of conventional banking system.
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