Zurich Cantonal Bank (ZKB), the fourth largest bank in Switzerland, is officially entering the crypto market. In that regard, the lender recently announced that it will offer Cryptocurrency-based services for its clients. In a press release, the bank showed the details of this new initiative aimed at its users.
With the new service, ZKB customers will be able to store and trade major cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH). The firm announced on Wednesday that the new offering is integrated into its existing digital platforms, including ZKB eBanking and ZKB Mobile Banking.
To run cryptocurrency operations, the bank has partnered with Crypto Finance AG, a subsidiary of the Deutsche Börse Group. The initiative includes measures such as the creation of addresses and management of client funds, said Alexandra Scriba, director of institutional and multinational clients at the bank.
The latter means that customers who opt for this option will not need to create their addresses to store cryptocurrencies. They will also save themselves the trouble of storing their private keys, since the bank will take care of that as well.
Some features of ZKB cryptocurrency services
Now that ZKB is going to offer cryptocurrency services, some of the important features of this service are obvious. First, it is noted that it is intended for institutional portfolios that can cushion the volatility and high risk of these assets. The other issue that stands out is that cryptocurrency investors through this service have no control over them.
On the other hand, it is worth noting that this solution is not only aimed at the bank’s own clients. It also has a business-to-business platform that allows other banks to participate in the strategy of offering services in the two largest digital currencies.
In summary, these are the key features of the ZKB crypto option:
- Allows customers to trade Bitcoin and Ethereum via ZKB eBanking and ZKB Mobile Banking.
- Integrate cryptocurrency balances into existing escrow accounts.
- It offers a business-to-business solution that enables other Swiss banks to provide cryptocurrency trading and custody services.
- Excludes US persons from the offer.
- It relies on a partnership with Crypto Finance AG to execute cryptocurrency operations
Crypto services have a foothold among Swiss banks
ZKB’s initiative comes amid a broader expansion of crypto services among Swiss financial institutions. In late June, Zurich-based crypto-friendly bank Sygnum extended its business-to-business services to more than 20 entities.
These lenders now linked to Sygmun include PostFinance, ZugerKB and LuzernerKB, allowing a significant portion of the Swiss population to access cryptocurrency markets.
For its part, over the past few years, ZKB has extensively explored Blockchain technology, including its participation in the issuance of the world’s first digital bond on the SIX Digital Exchange in 2021. It is also notable for its role as co-leader in a Swiss National Bank pilot project in 2023 to issue digital bonds with central bank digital currency.
It is worth noting that this initiative comes at a time when the crypto market is not doing very well. Over the past 24 hours, both BTC and ETH have been falling sharply.
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