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Leading Swiss bank Zurich Cantonal Bank is the latest financial institution to enter the cryptocurrency waters in Europe, as Uncovered bitcoin (btc) and ethereum (eth) trading services on September 4, 2024.
Swiss banking giant to offer cryptocurrency services
In its press release published today, the bank said its clients can avail 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 total assets under management worth $235 billion, Zurich Cantonal Bank has also joined forces with crypto Finance AG, a subsidiary of the Deutsche Börse Group. The partnership will allow the bank’s clients to transact with digital assets, in bitcoin and ethereum, the press release notes.
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Commenting on the development, Alexandra Scriba, Head of Institutional and Multinational Clients at Zurich Cantonal Bank, said:
Our new offering in the area of cryptocurrencies offers a high level of security and allows the integration of other currencies and applications. In the case of cryptocurrencies, the Cantonal Bank of Zurich takes on the essential function of safekeeping of the private keys. This means that customers and external banks do not need their own wallet and therefore do not have to worry about storing their own private keys. The Cantonal Bank of Zurich takes care of both.
The press release notes that the Zurich Cantonal Bank’s latest cryptocurrency offering is not limited to its customers alone. The bank offers business-to-business (B2B) solutions that enable other Swiss-based banks to offer their customers cryptocurrency trading and custody services. Swiss cantonal bank Thurgauer Kantonalbank is already taking advantage of this service.
It is worth noting that this is not the bank's first exposure to digital assets, as in 2021, the institution participated in the issuance of the world's first digital bond on the SIX Digital Exchange.
Europe continues to embrace bitcoin and ethereum
Europe’s history with cryptocurrencies like ethereum and bitcoin has been quite rocky. Due to its strict privacy laws and lack of a standard regulatory framework for digital assets, companies have generally avoided entering the emerging industry in Europe.
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For example, Binance, the world's largest cryptocurrency exchange by reported trading volume, has faced 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 the approval of bitcoin exchange-traded funds (ETFs) by the United States Securities and Exchange Commission (SEC): countries and international unions are becoming more comfortable embracing the digital asset economy.
In July 2024, USDC issuer Circle bagged Europe's first stablecoin license in France, allowing the company to operate as an entity compliant with European Union cryptocurrency regulations. The total cryptocurrency market capitalization was $1.975 trillion at the time of publication.
Featured image from Unsplash.com, chart from TradingView.com
