Zurich Cantonal Bank, one of the largest banks in Switzerland, is the latest banking institution to enable cryptocurrency trading for its customers.
According to an official announcement on Sept. 4, Zurich Cantonal Bank is now offering trading and custody services for Bitcoin (BTC) and Ether (ETH). “The offer is seamlessly integrated into the existing channels and is aimed equally at customers and third-party banks,” the bank said.
Known locally as Zürcher Kantonalbank (ZKB), Zurich Cantonal Bank is the largest cantonal bank and the fourth-largest bank in Switzerland, with total assets of 200 billion Swiss francs ($235 billion).
ZKB takes the responsibility to store crypto for its customers
According to the announcement, ZKB customers will be able to trade cryptocurrencies on a 24/7 basis directly through ZKB eBanking or ZKB Mobile Banking platforms. “The cryptocurrency holdings will be integrated into the existing portfolio view,” the bank noted.
“Our newly launched offering in the area of cryptocurrencies offers a high level of security and allows the integration of other currencies and applications,” ZKB’s head of institutional clients, Alexandra Scriba, said. She added:
“When it comes to cryptocurrencies, ZKB takes on the critical function of securely storing the 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. ZKB takes care of both.”
Cointelegraph approached ZKB for comment regarding its role in providing custody to its users but did not receive a response at the time of publication.
ZKB’s crypto custody and trading solution is available for third-party banks
ZKB mentioned that its newly launched crypto custody and trading solution is available both to individuals and third-party banks.
The business-to-business (B2B) solution from Zürcher Kantonalbank gives Swiss banks the opportunity to offer their customers the trading and secure storage of BTC and ETH, the bank said.
Source: Zurich Cantonal Bank (Translated by Google)
According to the announcement, Thurgauer Kantonalbank, a Swiss cantonal bank serving the canton of Thurgau, is the first partner bank to use ZKB’s B2B service. Orders are traded via Crypto Finance AG, a financial technology company subsidiary of the German multinational corporation Deutsche Börse Group.
ZKB has been exploring the digital asset space in the past few years
ZKB was founded in 1870 as the “bank of the citizens of Zurich.” The bank has been involved in exploring the blockchain and cryptocurrency industry for a while, participating in the issuance of the world’s first digital bond on the SIX Digital Exchange in 2021.
In 2023, ZKB also handled the issuance of digital bonds with the central bank digital currency as joint lead manager as part of a pilot project of the Swiss National Bank.
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According to local cryptocurrency entrepreneur and investor Jakob Bosshard, ZKB was expected to launch its crypto services at least two months ago.
Previously, other Swiss banks such as the Swiss Cantonal Banks Zuger Kantonalbank, St. Galler Kantonalbank AG and Luzerner Kantonalbank also successfully introduced cryptocurrency services, Bosshard mentioned in a LinkedIn post in early July.
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