Leading Swiss bank Zurich Cantonal Bank is the latest financial institution to enter the cryptocurrency waters in Europe, as exposed Bitcoin (BTC) and Ethereum (ETH) Trading Services on September 4, 2024

Swiss banking giant to offer crypto services

In a press release published today, the bank said its customers can enjoy 24/7 cryptocurrency trading and custody services through its existing digital platforms, such as ZKB eBanking and ZKB Mobile Banking.

The fourth-largest Swiss bank with $235 billion in total assets under management, Zurich Cantonal Bank, has joined forces with Crypto Finance AG, a subsidiary of Deutsche Börse Group. The partnership will enable the bank’s clients to transact digital assets in Bitcoin and Ethereum, a press release said.

Commenting on the developments, Alexandra Scriba, Head of Institutional Clients and International Companies at Zurich Cantonal Bank, said:

Our novel offering in the cryptocurrency space offers a high level of security and enables the integration of additional currencies and applications. When it comes to cryptocurrencies, Zurich Cantonal Bank takes on the critical function of securely storing private keys. Customers and external banks therefore do not need their own wallet and therefore do not have to worry about storing their own private keys. Zurich Cantonal Bank takes care of both.

The press release notes that Zurich Cantonal Bank’s latest crypto offering is not restricted to its customers. The bank offers business-to-business (B2B) solutions that allow other Swiss-based banks to offer their customers crypto trading and custody services. Swiss cantonal bank Thurgauer Kantonalbank is already using the service.

It is worth noting that this is not the bank’s first exposure to digital assets, as already in 2021 the institution participated in the issuance of the world’s first digital bonds on the SIX Digital Exchange.

Europe continues to adopt Bitcoin and Ethereum

The history of cryptocurrencies like Ethereum and Bitcoin in Europe is somewhat convoluted. Due to strict privacy laws and a lack of a standard regulatory framework for digital assets, companies have generally avoided entering the emerging industry in Europe.

For example, Binance, the world’s largest cryptocurrency exchange by reported trading volume, has stood face to face several regulatory hurdles in Europe. In 2023, Binance not only decided to cancel its registration with the UK Financial Conduct Authority (FCA), but also closed its operations in the Netherlands.

However, with the growing acceptance of cryptocurrencies around the world – driven by approval Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) – countries and international associations are becoming increasingly comfortable embracing the digital asset economy.

In July 2024, the issuer of USDC Circle packed Europe’s first stablecoin license in France, enabling the company to operate as an entity compliant with European Union cryptocurrency regulations. At the time of going to press, the total cryptocurrency market capitalization was $1.975 trillion.