Last September, Switzerland’s largest state-owned bank, Zürcher Kantonalbank (ZKB), entered the crypto business. Clients gained access to Bitcoin (BTC) and Ethereum (ETH). Now, Peter Hubli, head of the bank’s crypto division, has revealed figures related to the offering for the first time.
In 2024, numerous state banks in Switzerland positioned themselves in the crypto space. The cantonal banks of Lucerne, Zug, St. Gallen, and Zurich launched their own services for the trading and custody of cryptocurrencies. PostFinance also integrated digital assets into its offering. The motivation is obvious: banks that fail to provide crypto solutions risk losing customer funds. According to internal analyses, PostFinance alone saw over one billion Swiss francs flow to crypto exchanges over five years, as CVJ.CH reported last February. Other banks have experienced similar developments.
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ZKB: insights after six months of crypto trading
Zürcher Kantonalbank identified around CHF 600 million that clients had withdrawn directly to crypto exchanges. This was recently revealed by Peter Hubli, Head of Digital Asset Solutions at ZKB, during a panel discussion in Lugano. Outflows to general brokers or fintechs offering crypto services were likely not included, meaning the actual figure could exceed one billion francs. With a crypto trading fee of 1%, the bank may have missed out on revenue in the tens or even hundreds of millions.
None of the cantonal banks have disclosed figures on the trading volume of their crypto services so far. Hubli also remained tight-lipped when asked. Nevertheless, some of the insights he shared were striking. A significant portion of the offering’s clientele came not from the retail segment but from private banking. The average order size of CHF 15,000 exceeded expectations. The average customer age of 30 to 50 years also indicates a serious client base, not young “gamblers” trading with a few hundred francs.
Clients want Bitcoin
Currently, ZKB clients can trade the cryptocurrencies Bitcoin (BTC) and Ethereum (ETH). Some cantonal banks offer a wider range of digital assets - PostFinance even provides access to 16. Despite this, demand is clearly dominated by Bitcoin, at least at the state bank of Zürich. The “digital gold” accounted for roughly 88% of trading volume, with Ethereum making up just 12%. The situation in Switzerland mirrors that in the US, where Bitcoin ETFs hold around USD 97 billion in assets under management, compared to just USD 8.5 billion for Ethereum funds.
Hubli also highlighted another positive trend: about 40% of crypto clients opened a new custody account. These individuals had not previously traded securities with ZKB. So in the long term, the bank could use its crypto services to build lasting client relationships - extending even beyond digital assets.
