The largest state bank in , the ZKB officially entered the crypto market by offering trading and custody services for Bitcoin and Ethereum.
Crypto services in Swiss banks
Rumors about ZKB’s crypto services have been circulating for some time, with early indications reported back in June.
The official launch finally confirms that customers can now engage in cryptocurrency trading directly through ZKB’s platforms.
The bank’s press release share its commitment to providing a full range of financial services, including the trading and custody of cryptocurrencies, marking a huge step forward in the integration of digital assets into traditional banking.
How important the integration of the crypto services into the banking system
This development signals the growing acceptance of cryptocurrencies in mainstream finance in Switzerland, which is already well-known for its progressive stance on digital assets.
This could encourage more banks to follow suit, leading to increased competition and innovation in the crypto space.
ZKB has been exploring the risks and opportunities of blockchain technology for years, having participated in projects like the issuance of the world’s first digital bond on the SIX Digital Exchange in 2021 and collaborating with the Swiss National Bank on digital bond projects in 2023.
How the crypto services works
ZKB wants to provide a high level of security for its crypto services, as it will securely store customers’ private keys, eliminating the need for clients to manage their own wallets.
Alexandra Scriba, the Head of Institutional Clients & Multinationals at ZKB stated that the bank’s role is to ensure the safe custody of these keys, which adds a layer of security for both customers and partner banks.
The bank’s business-to-business solution also allows other Swiss banks to offer cryptocurrency trading and custody services, with Thurgauer Kantonalbank already utilizing this service.
Unfortunately, only clients residing in Switzerland can trade cryptocurrencies through ZKB. Individuals from the U.S. aren’t eligible for these services.
All cryptocurrency purchases are conducted in USD, and if transactions are made in CHF or other currencies, they will be converted into USD.
It is also important to note that clients cannot transfer cryptocurrencies to or from the bank at this time.
