Three Swiss cantonal banks already offer services for cryptocurrencies. With Zurich Cantonal Bank (Zürcher Kantonalbank, ZKB), the largest state bank is now entering the field. ZKB customers have immediate access to the trading and custody of Bitcoin (BTC) and Ethereum (ETH).
Rumors about a crypto offering from Zurich Cantonal Bank have been circulating for a while. Back in June, CVJ.CH reported on hints by insiders and the first signs of a crypto offering in the mobile app. Now the product launch is official. As of today, customers can trade Bitcoin and Ethereum around the clock directly in ZKB eBanking or ZKB Mobile Banking via Zurich Cantonal Bank, according to a press release. "As a universal bank, ZKB offers its customers all relevant financial services, including the trading and custody of cryptocurrencies."
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ZKB provides crypto custody
According to the press release, Zurich Cantonal Bank has been looking into the opportunities and risks of this technology for years. In 2021, for example, the bank was involved in issuing the world's first digital bond on the SIX Digital Exchange. In 2023, it acted as joint lead manager in a pilot project of the Swiss National Bank to issue digital bonds with digital central bank money (Project Helvetia III). The new crypto offering will offer a high level of security and allow the integration of additional currencies and applications.
"In the case of cryptocurrencies, Zurich Cantonal Bank assumes the critical function of securely storing the private keys. This means that customers and third-party banks do not need their own wallet and therefore do not have to worry about the safekeeping of their own private keys. Zurich Cantonal Bank takes care of both." - Alexandra Scriba, Head of Institutional Clients & Multinationals at Zurich Cantonal Bank
The Zurich Cantonal Bank's business-to-business solution also gives Swiss banks the opportunity to offer their customers the trading and secure custody of cryptocurrencies. The first partner bank, Thurgauer Kantonalbank, is already using this service. Orders are traded via Crypto Finance AG, a subsidiary of Deutsche Börse Group.
Details of the offering
Only clients domiciled in Switzerland are permitted to trade cryptocurrencies, as can be read on the ZKB website. US persons are excluded from the offering. As with other cantonal banks, cryptocurrencies are always purchased in US dollars (USD). If a transaction is made in CHF or another currency, it is converted into USD. Furthermore, it is currently not possible to transfer cryptocurrencies to the bank or have them delivered by the bank. The fees for ZKB's crypto offering are structured as follows:
- Custody fee: 0.50% p.a. (min. CHF 5 per month)
- Trading fee digital channels (eBanking, eWealth and Mobile Banking):
- Minimum fee: CHF 10
- up to CHF 250,000: 1.00%
- over CHF 250,000: 0.75%
- Trading fee for other channels (telephone, letter, etc.):
- Minimum fee: CHF 20
- up to CHF 250,000: 2.00%
- over CHF 250,000: 1.75%
