Swiss banking giant ZKB partners with Crypto Finance to offer crypto brokerage services
Date: 2024-09-06 Author: Gabriel Deangelo Categories: BUSINESS
The Zurich Cantonal Bank (ZKB), one of Switzerland’s largest banks, has launched crypto brokerage services for its clients.
ZKB has teamed up with Crypto Finance AG, a subsidiary of German multinational holding Deutsche Börse Group, to handle cryptocurrency trading.
Since September 4, ZKB has been offering Bitcoin and Ether trading and custody services, the bank announced in an official press release.
ZKB integrates new services into existing banking channels
ZKB said the new services are integrated into existing banking channels, providing convenient access for both private clients and third-party banks.
Clients can now trade cryptocurrencies 24/7 via ZKB’s eBanking or Mobile Banking platforms.
The bank emphasized that crypto assets will be displayed in the client’s overall portfolio, which will simplify asset management within traditional banking services.
“Our newly launched crypto offering provides a high level of security and allows for the integration of other currencies and applications,” said Alexandra Skriba, head of institutional clients at ZKB.
She explained that ZKB takes responsibility for the safe storage of private keys for its clients.
“Clients and third-party banks therefore do not need their own crypto wallet or worry about storing their private keys. ZKB will take care of this.”
The move puts ZKB in line with other leading Swiss banks offering crypto services in response to growing demand in the digital finance space.
ZKB’s crypto brokerage service is available not only to the bank’s own clients, but also to third-party financial institutions.
As part of its business-to-business (B2B) solution, ZKB is already partnering with Thurgauer Kantonalbank, another Swiss bank, to offer crypto trading and custody services to their clients.
ZKB Renews Move into Crypto
ZKB’s involvement in the crypto market is not its first foray into blockchain technology.
In 2021, ZKB participated in the issuance of the world’s first digital bond on the SIX Digital Exchange, and in 2023, the bank played a key role in issuing digital bonds using a central bank digital currency (CBDC) as part of a pilot project by the Swiss National Bank.
Providing crypto services is seen as part of a larger trend among Swiss banks. Other institutions, including Zuger Kantonalbank, St. Galler Kantonalbank, and Luzerner Kantonalbank, have already rolled out similar offerings.
In April, a group of Bitcoin enthusiasts in Switzerland tried to convince the Swiss National Bank (SNB) to include Bitcoin in its reserves. They have launched a petition to initiate a referendum that would require changes to the country's constitution. To do this, they need to collect more than 100,000 signatures from Swiss citizens.
As previously reported, Western Europe has become the leading region in global cryptocurrency adoption, attracting a significant number of daily traders - between 1.2 and 1.5 million people.
Germany and France lead the region in activity, while Austria has shown the most significant year-on-year growth, increasing its number of users by 70%.
