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Zurich Cantonal Bank (ZKB), one of the largest financial institutions in Switzerland, has made a significant move by launching its crypto brokerage services aimed at providing enhanced financial options for its clients.
Partnership with Crypto Finance AG
In a strategic partnership, ZKB has joined forces with Crypto Finance AG, a subsidiary of the German multinational Deutsche Börse Group, to facilitate cryptocurrency trades. As announced on September 4, ZKB will now offer trading and custody services specifically for Bitcoin and Ether.
Seamless Integration for Clients
ZKB’s new cryptocurrency services are seamlessly integrated into existing banking channels, ensuring effortless access for both individual clients and third-party banks. Customers can now enjoy around-the-clock trading of cryptocurrencies through ZKB’s eBanking and Mobile Banking platforms. Additionally, these cryptocurrency holdings are displayed alongside traditional assets in the customer’s overall portfolio, simplifying management.
Focus on Security and Convenience
Emphasizing the importance of security, Alexandra Scriba, ZKB’s head of institutional clients, 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.” The bank will assume the responsibility of securely storing customers’ private keys, alleviating the need for customers and third-party banks to manage their own wallets.
Expanding Services to Third-Party Institutions
This new crypto brokerage service isn’t limited to ZKB’s direct customers; it also extends to various third-party financial institutions. As part of its business-to-business (B2B) solution, ZKB has partnered with Thurgauer Kantonalbank to offer crypto trading and custody services to their clientele, enhancing the overall service landscape in the Swiss banking sector.
A Historical Perspective on ZKB’s Blockchain Involvement
ZKB’s initiative into the cryptocurrency market is part of a larger narrative, as this isn’t the first time the bank has engaged with blockchain technology. In 2021, ZKB played a key role in the issuance of the first-ever digital bond on the SIX Digital Exchange. Furthermore, in 2023, ZKB was instrumental in issuing digital bonds utilizing central bank digital currency (CBDC) in collaboration with the Swiss National Bank as part of a pilot project.
Trends in Swiss Banking
This move by ZKB aligns with a growing trend among Swiss banks, as similar crypto services have been introduced by institutions like Zuger Kantonalbank, St. Galler Kantonalbank, and Luzerner Kantonalbank. In addition, there has been a collective effort among Bitcoin advocates in Switzerland, pushing for the Swiss National Bank to consider adding Bitcoin to its reserves through a petition aimed at changing the nation’s constitution.
Surge in Crypto Adoption in Western Europe
As reported, Western Europe is rapidly emerging as a hotspot for global cryptocurrency adoption, with daily trading figures spanning between 1.2 million and 1.5 million traders. Among the leading countries in this surge are Germany and France, while Austria has seen an astonishing 70% annual growth in user adoption of cryptocurrencies.
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