Zurich Cantonal Bank, a leading Swiss financial institution, announced the introduction of Bitcoin (BTC) and Ethereum (ETH) trading services on September 4, 2024. Customers can now engage in 24/7 cryptocurrency trading and secure custody services through the bank’s digital platforms, such as ZKB eBanking and ZKB Mobile Banking.
As the fourth-largest bank in Switzerland, managing assets worth $235 billion, Zurich Cantonal Bank has partnered with Crypto Finance AG, a subsidiary of the Deutsche Börse Group, to facilitate digital asset trades. This collaboration will enable the bank’s clients to trade in cryptocurrencies like Bitcoin and Ethereum seamlessly.
Alexandra Scriba, Head of Institutional Clients & Multinationals at Zurich Cantonal Bank, highlighted the security and convenience of their new cryptocurrency services. “Our newly launched offering in the area of cryptocurrencies offers a high level of security and allows the integration of additional currencies and applications. When it comes to cryptocurrencies, the Zurich Cantonal Bank assumes the critical function of the safe custody of private keys. Customers and third-party banks therefore do not need their own wallet and therefore do not have to worry about storing their own private keys. The Zurich Cantonal Bank takes care of both.”
Additionally, the offering extends beyond the bank’s direct customers. Zurich Cantonal Bank provides business-to-business (B2B) solutions, enabling other Swiss banks to offer crypto trading and custody services to their clients. Thurgauer Kantonalbank, another Swiss cantonal bank, is already utilizing this service.
This move is not Zurich Cantonal Bank’s first foray into digital assets; in 2021, it was involved in issuing the world’s first digital bond on the SIX Digital Exchange.
Europe has had a complex history with cryptocurrencies like Bitcoin and Ethereum, largely due to stringent privacy laws and the absence of a uniform regulatory framework. This has often deterred businesses from entering the European digital assets sector. For example, Binance, the world’s largest cryptocurrency exchange by reported trading volume, faced regulatory challenges in Europe and had to cancel its registration with the UK Financial Conduct Authority (FCA) and cease operations in the Netherlands in 2023.
Despite these challenges, the global acceptance of cryptocurrencies is on the rise. The approval of Bitcoin exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC) has made countries and unions more open to adopting digital assets. In July 2024, USDC issuer Circle obtained Europe’s first stablecoin license in France, allowing the company to operate compliantly under European Union crypto regulations.
At the time of writing, the total cryptocurrency market capitalization stands at $1.975 trillion.