Bitcoin (BTC) is approaching new lows, touching $55,000 today. However, there is positive news. The growing institutional interest in cryptocurrencies has compelled banks to act. Following Turkey’s Garanti BBVA Bank, one of Switzerland’s largest banks has now stepped in to support two major cryptocurrencies.
Zurich Cantonal Bank’s Crypto Services
As of today, Zurich Cantonal Bank (ZKB) has begun offering cryptocurrency services to individual customers and third-party banks. Teaming up with Crypto Finance, a company managed by Deutsche Börse and holding FINMA and BaFIN licenses, ZKB will provide these services legally.
ZKB, one of Switzerland’s four major banks and the largest cantonal bank in the Zurich region, boasts AAA ratings from Fitch, Moody’s, and S&P. In 2023, it was named the second safest bank in the world by rating agencies.
Direct Crypto Transactions
Starting today, ZKB customers can buy and sell Bitcoin (BTC) and Ethereum (ETH) directly through the bank’s mobile application. This move is particularly appealing to cautious investors who view centralized cryptocurrency exchanges as less secure, especially following incidents like the FTX collapse. Such alternatives are likely to boost market liquidity.
Peter Hubli, ZKB’s Head of Digital Asset Solutions, stated: “With Crypto Finance by our side, we have a long-term, industry-experienced, regulated, and competent partner who understands the nuances of the crypto business.”
Key Takeaways for Investors
- ZKB now offers secure and regulated cryptocurrency trading through its mobile app.
- Partnership with Crypto Finance ensures compliance with major regulatory bodies.
- Increased confidence among cautious investors could lead to higher market liquidity.
Although ZKB’s move is significant, it is not the first Swiss bank to venture into crypto. In 2021, BBVA Switzerland was the pioneer, and in early 2024, PostFinance also began offering cryptocurrency services in partnership with Sygnum.
The growing involvement of reputable banks in the crypto sector is encouraging news for all investors.