Zurich Cantonal Bank (ZKB), one of Switzerland’s largest banking institutions, has officially launched cryptocurrency trading and custody services, broadening its financial offerings to include Bitcoin and Ether. This move marks a significant step as the bank integrates these services into its existing financial channels, catering to both individual customers and third-party banks.
Integration into Traditional Banking Services
On September 4, ZKB announced that customers could now engage in cryptocurrency transactions directly through its eBanking or Mobile Banking platforms. This service allows for seamless trading and portfolio management, with cryptocurrencies being integrated into customers’ existing portfolio views. This strategic integration highlights ZKB’s commitment to blending traditional banking with modern financial technologies.
A critical component of ZKB’s new service is its custody solution, where the bank takes on the responsibility of securely storing private keys. According to Alexandra Scriba, ZKB’s head of institutional clients, this service provides a high level of security and eliminates the need for customers and third-party banks to manage their own crypto wallets. “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 do not have to worry about storing their own private keys. ZKB takes care of both,” Scriba stated.
The new crypto custody and trading solution is not limited to ZKB’s direct customers but is also available to third-party banks. This B2B service allows other Swiss banks to offer their clients cryptocurrency trading and secure storage options. Thurgauer Kantonalbank has been identified as the first partner bank to utilize ZKB’s service, with transactions being facilitated through Crypto Finance AG, a subsidiary of the German multinational Deutsche Börse Group.
Founded in 1870, ZKB has long been recognized as a pioneer in adopting new technologies. The bank has actively participated in the blockchain and cryptocurrency sectors, notably issuing the world’s first digital bond on the SIX Digital Exchange in 2021. More recently, in 2023, ZKB played a significant role in the issuance of digital bonds backed by central bank digital currency in a pilot project led by the Swiss National Bank.
The Landscape of Cryptocurrency Services in Swiss Banks
ZKB’s entry into cryptocurrency services follows the path already taken by other Swiss cantonal banks like Zuger Kantonalbank, St. Galler Kantonalbank AG, and Luzerner Kantonalbank, which have also introduced cryptocurrency services. According to cryptocurrency entrepreneur Jakob Bosshard, these developments were anticipated, with ZKB expected to launch its crypto services months prior to the official announcement.
| Bank | Crypto Services Initiated | Special Features |
|---|---|---|
| Zurich Cantonal Bank | 2024 | Trading and custody for Bitcoin and Ether; B2B services |
| Zuger Kantonalbank | Prior to 2024 | Early adopters of crypto services |
| St. Galler Kantonalbank AG | Prior to 2024 | Integrated crypto services |
| Luzerner Kantonalbank | Prior to 2024 | Expanded digital asset offerings |
Zurich Cantonal Bank’s introduction of Bitcoin and Ether trading and custody services represents a significant evolution in the integration of cryptocurrency into traditional banking systems in Switzerland. By offering these services, ZKB not only enhances its own portfolio but also supports the broader adoption and normalization of digital assets in the mainstream financial industry.
As ZKB continues to innovate and adapt to the changing financial landscape, its role in shaping the future of banking and cryptocurrency in Switzerland and beyond will be crucial.
