Zürcher Kantonalbank (ZKB), one of Switzerland’s largest and most trusted financial institutions, has introduced a cryptocurrency service aimed at its retail clients and third-party banks. This move represents a significant shift as more traditional banking institutions explore the potential of digital assets in response to increasing demand from clients. To facilitate its crypto asset brokerage services, ZKB has partnered with Crypto Finance, a digital asset firm owned by Deutsche Börse. Crypto Finance holds licenses from both the Swiss Financial Market Supervisory Authority (FINMA) and Germany’s Federal Financial Supervisory Authority (BaFIN), which ensures that the service meets high regulatory standards.
In addition to its partnership with Crypto Finance, ZKB has developed its own crypto custody solution, an essential aspect of its service that allows clients to securely store their digital assets. Although the bank has worked closely with Fireblocks, a well-known digital asset security platform, it maintains that its custody solution is largely in-house. This hybrid approach underscores the bank’s commitment to providing a secure and reliable platform for its users while leveraging existing expertise within the industry.
ZKB is not only one of the four major banks in Switzerland but also the largest cantonal bank, owned by the Canton of Zurich. It is widely regarded for its stability and reliability in the global banking sector, earning a reputation as one of the safest banks worldwide. In 2023, Global Finance ranked ZKB as the second safest bank globally, a position underpinned by its strong credit ratings from Fitch, Moody’s, and Standard & Poor’s (S&P). These credentials make ZKB’s entry into the cryptocurrency market particularly significant, as it signals that even highly conservative financial institutions are increasingly recognizing the importance of digital assets in the modern economy.
ZKB’s retail clients can now trade two of the most prominent cryptocurrencies, Bitcoin and Ether, directly through the bank’s mobile app, eBanking services, and other digital channels. This easy integration of crypto trading into existing banking services provides clients with a seamless experience, reducing the need for external platforms to manage their digital asset portfolios. The bank’s decision to focus on Bitcoin and Ether reflects the continued dominance of these two cryptocurrencies within the broader digital asset landscape, and their widespread acceptance in various sectors.
Peter Hubli, Head of Digital Asset Solutions at ZKB, highlighted the importance of the partnership with Crypto Finance in launching this new service. He emphasized that Crypto Finance’s extensive industry experience and regulatory compliance made it a perfect collaborator for ZKB’s foray into digital assets. Hubli pointed out that Crypto Finance’s ability to navigate the complexities of the crypto business was critical in ensuring the success of ZKB’s new offering.
Switzerland has long been known for its favorable regulatory environment when it comes to cryptocurrencies and blockchain technology. The country has earned a reputation as a global leader in digital finance, attracting numerous fintech and blockchain startups. However, the provision of retail crypto services has been relatively slow to take off, particularly among the country’s largest banks. While some wealth managers in Switzerland have been offering crypto services for years, retail offerings have remained somewhat limited until recently.
In fact, among Switzerland’s four major banks, ZKB is the second to introduce a retail crypto service. PostFinance, another major Swiss bank, was the first to launch a cryptocurrency service earlier this year through a partnership with Sygnum Bank. This marked a major milestone for cryptocurrency adoption in the country, as it opened up the market to a broader segment of the population. With ZKB now entering the space, it seems clear that cryptocurrency is gaining traction within the traditional banking system.
Looking back at the global context, ZKB’s move follows the example set by BBVA Switzerland, which in 2021 became one of the first banks in the world to launch digital asset services without imposing net worth requirements on its customers. This marked a significant step toward democratizing access to cryptocurrencies, enabling a wider range of clients to participate in the growing digital asset market.
ZKB’s entrance into the retail cryptocurrency space underscores the ongoing evolution of the banking industry, as more institutions look to integrate digital assets into their portfolios. As cryptocurrencies become an increasingly important asset class, ZKB’s offering provides retail clients with a secure and convenient way to trade and store Bitcoin and Ether, further solidifying Switzerland’s position as a global leader in financial innovation.