Major Swiss bank Zurich Cantonal Bank is the latest financial entity to enter Europe’s crypto waters as it revealed Bitcoin (BTC) and Ethereum (ETH) trading services on September 4, 2024.
Swiss banking juggernaut to offer crypto services
In its press release published today, the bank said that its customers can avail 24/7 cryptocurrency trading and custody services through its existing digital platforms such as ZKB eBanking and ZKB Mobile Banking.
The fourth-largest Swiss bank with total assets under management worth $235 billion, Zurich Cantonal Bank has also joined forces with Crypto Finance AG, a subsidiary of Deutsche Börse Group. The partnership will allow the bank’s clients to conduct digital asset trading in Bitcoin and Ethereum, the statement noted.
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Commenting on the development, Alexandra Scriba, Head of Institutional and Multinational Clients at Zurich Cantonal Bank said:
Our newly launched offering in the area of cryptocurrencies offers a high level of security and enables the integration of additional currencies and applications. When it comes to cryptocurrencies, the Cantonal Bank of Zurich takes on the critical function of secure 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 Cantonal Bank of Zurich takes care of both.
The press release notes that Zurich Cantonal Bank’s latest crypto offering is not limited to its customers only. The bank offers business-to-business (B2B) solutions that allow other Swiss-based banks to provide their customers with crypto trading and custody services. Swiss cantonal bank Thurgauer Kantonalbank is already taking advantage of this service.
It is worth noting that this is not the bank’s first exposure to digital assets, as in 2021 the institution was involved in the issuance of the world’s first digital security on the SIX Digital Exchange.
Europe continues to embrace Bitcoin and Ethereum
Europe’s history with cryptocurrencies like Ethereum and Bitcoin has been quite complicated. Due to its strict privacy laws and lack of a standard regulatory framework for digital assets, companies have typically shied away from entering the emerging industry in Europe.
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For example, Binance, the world’s largest cryptocurrency exchange by reported trading volume, faced several regulatory hurdles in Europe. In 2023, Binance not only decided to cancel its registration with the UK Financial Conduct Authority (FCA), but also closed its operations in the Netherlands.
However, with the growing acceptance of cryptocurrencies around the world – driven by approval of Bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) – countries and international unions are feeling more comfortable embracing the digital asset economy.
In July 2024, USDC issuer Circle bagged Europe’s first stablecoin license in France, allowing the company to operate as an entity compliant with European Union crypto regulations. The total crypto market cap was $1.975 trillion at the time of writing.
Featured image from Unsplash.com, chart from TradingView.com