On September 4, 2024, Zurich Cantonal Bank, one of Switzerland’s leading financial institutions, announced its foray into the cryptocurrency market by unveiling Bitcoin (BTC) and Ethereum (ETH) trading services. The bank’s clientele can now access around-the-clock cryptocurrency trading and custody services through its digital platforms, ZKB eBanking and ZKB Mobile Banking.
Zurich Cantonal Bank, the fourth-largest bank in Switzerland with $235 billion in assets under management, has partnered with Crypto Finance AG, a subsidiary of the Deutsche Börse Group. This partnership will facilitate the bank’s customers in executing trades in Bitcoin and Ethereum. Alexandra Scriba, Head of Institutional Clients & Multinationals at Zurich Cantonal Bank, emphasized the security of their new cryptocurrency services, highlighting the bank’s role in managing the private keys crucial for cryptocurrency transactions. This feature relieves customers and third-party banks from the responsibility of maintaining their private keys and digital wallets.
The Zurich Cantonal Bank’s latest offering extends beyond its primary customer base. The bank’s business-to-business (B2B) solutions allow other Swiss banks to provide cryptocurrency trading and custody services to their clients. Thurgauer Kantonalbank is already leveraging this service. This new venture into the cryptocurrency space builds on Zurich Cantonal Bank’s prior experience in digital assets, such as its involvement in issuing the world’s first digital bond on the SIX Digital Exchange in 2021.
Europe’s relationship with cryptocurrencies like Bitcoin and Ethereum has historically been complex due to stringent privacy laws and an inconsistent regulatory framework. For example, Binance, the world’s largest cryptocurrency exchange by trading volume, encountered numerous regulatory challenges in Europe, leading it to cancel its registration with the UK Financial Conduct Authority and cease operations in the Netherlands in 2023.
However, there is a growing global acceptance of cryptocurrencies, driven in part by the US Securities and Exchange Commission’s approval of Bitcoin exchange-traded funds (ETFs). This burgeoning acceptance is prompting countries and international unions to integrate digital assets into their economies more comfortably. In July 2024, Circle, the issuer of USDC, secured Europe’s first stablecoin license in France, allowing it to operate under the European Union’s cryptocurrency regulations. At present, the total cryptocurrency market capitalization stands at $1.975 trillion.
