Zürcher Kantonalbank expands retail cryptocurrency services

Zürcher Kantonalbank (ZKB), one of Switzerland's financial institutions, has launched a cryptocurrency service for its retail clients and third-party banks.

ZKB has partnered with Crypto Finance, a Deutsche Börse-owned firm, to provide crypto asset brokerage services.

Crypto Finance is regulated by the Swiss Financial Market Supervisory Authority (FINMA) and Germany's Federal Financial Supervisory Authority (BaFIN), ensuring compliance with high regulatory standards.

To complement this service, ZKB has developed its own crypto custody solution, enabling clients to securely store their digital assets.

While the bank has collaborated with Fireblocks, a digital asset security platform, it maintains that its custody solution is primarily in-house.

This hybrid approach emphasises ZKB's commitment to security and reliability while leveraging industry expertise.

ZKB's retail clients can now trade Bitcoin (CRYPTO:BTC) and Ether (CRYPTO:ETH) directly through the bank's mobile app, eBanking, and other digital channels.

This integration simplifies the crypto trading process, reducing the need for external platforms.

The decision to focus on Bitcoin and Ether reflects their strong presence in the digital asset market and widespread acceptance across sectors.

The bank's entry into the cryptocurrency market is notable, given its reputation as one of the safest banks globally.

In 2023, Global Finance ranked ZKB as the second safest bank worldwide, bolstered by strong credit ratings from Fitch, Moody’s, and Standard & Poor’s (S&P).

ZKB is the second major Swiss bank to offer a retail crypto service, following PostFinance's partnership with Sygnum Bank earlier this year.

ZKB's new service marks a step toward broader adoption of cryptocurrencies in the traditional banking sector, further solidifying Switzerland's role in financial innovation.