Switzerland’s fourth-largest bank ZKB launches crypto services

Zurich Cantonal Bank, the fourth largest bank in Switzerland, has expanded its financial services by launching cryptocurrency trading and custody services.

Zurich Cantonal Bank, Switzerland’s fourth largest bank, has officially entered the cryptocurrency market, offering its clients the ability to trade and store Bitcoin (BTC) and Ethereum (ETH).

The new offering is integrated into its existing digital platforms, including ZKB eBanking and ZKB Mobile Banking, the bank said in a press release dated September 4. The bank has partnered with Crypto Finance AG, a subsidiary of Deutsche Börse Group, to handle crypto transactions, the press release reads.

Alexandra Scriba, Head of Corporate Clients and Multinationals at ZKB, says that clients and third-party banks will not need their own wallets and will not have to worry about storing their private keys, as the bank will manage both processes.

ZKB’s foray into the crypto space isn’t limited to its own clients, as the bank also offers a business-to-business solution that allows other Swiss banks to offer crypto trading and custody services. According to the press release, Thurgauer Kantonalbank, a Swiss cantonal bank, is the first partner bank to adopt the service.

The latest move follows ZKB’s recent efforts to enter the cryptocurrency market; the bank has explored blockchain technology extensively in recent years, including its participation in the issuance of the world’s first digital bond on the SIX Digital Exchange in 2021 and its role as co-lead manager in a 2023 Swiss National Bank pilot project to issue digital bonds with a central bank digital currency.

ZKB’s initiative comes amid a broader expansion of crypto services among Swiss financial institutions. In late June, Zurich-based crypto-friendly bank Sygnum expanded its business-to-business services to more than 20 institutions, including PostFinance, ZugerKB, and LuzernerKB, giving a significant portion of the Swiss population access to crypto markets.