In August 2023, the Luzerner Kantonalbank (LUKB) became the first Swiss state bank to announce the preparation of a comprehensive crypto offering. Following the product launches of its bank colleagues Zug and St. Gallen last winter, LUKB has now also joined the fray.
According to a press release, Luzerner Kantonalbank has been active in the field of digital assets and cryptocurrencies since 2020. Following intensive market research and an assessment of client needs, the bank has built up both internal expertise and its own infrastructure. It is now ready to launch its offering. As of today, Luzerner Kantonalbank customers can trade and hold three crypto assets via e-banking and mobile banking.
Subscribe to our newsletter
The best articles of the week, directly delivered into your mailbox.
Certified custody offering
LUKB has been testing the product and infrastructure for several months and in various product phases. The offering is aimed at private individuals domiciled in Switzerland who wish to invest in cryptocurrencies in a simple, secure and convenient way. A securities account with LUKB is required. Thanks to the seamless integration of crypto functions into e-banking, Luzerner Kantonalbank customers can get a comprehensive overview with just a few clicks.
A unique feature of the offering is the certification of the custody solution. Other cantonal banks typically rely on crypto partners for the custody of digital assets. However, LUKB is the first traditional bank to have built its own crypto custody solution with ISAE 3000 certified key management. This is an international auditing standard published by the International Federation of Accountants (IFAC), which includes an audit by an auditor.
Details of LUKB's crypto offering
Luzerner Kantonalbank currently offers three cryptocurrencies: Bitcoin (BTC), Ethereum (ETH) and USD Coin (USDC). In addition to the two largest decentralized blockchain currencies, customers can also invest in a digital dollar. Another first among cantonal banks: crypto trading is possible with all foreign currencies available at LUKB. There are no additional costs for foreign exchange transactions. In contrast, the Cantonal Banks of Zug and St. Gallen, as well as PostFinance, only allow trading in US dollars.
LUKB plans to add more cryptocurrencies in the coming weeks. In addition, a crypto investment plan will be launched for regular investments in digital assets. Finally, the deposit and withdrawal of cryptocurrencies to and from personal wallets is in the planning stage. Therefore, it makes sense to initially limit the selection of cryptocurrencies, as Serge Kaulitz, Head of DLT, Blockchain and Digital Assets at Luzerner Kantonalbank, pointed out to CVJ.CH. The fee structure of the offering, with a minimum order of CHF 50, is as follows:
- Transaction Fee
- up to CHF 10,000: 1.8% per transaction
- 10,000 to 50,000 CHF: 1.55% per transaction
- 50,000 to 100,000 CHF: 1.25% per transaction
- over 100,000 CHF: 1.00% per transaction
- from 250,000 CHF: on request
- Custody Fee
- Storage in custody: 0.60% per year (excluding VAT)
- E-depot: no minimum price if only cryptocurrencies are held
