What has happened this week in the world of blockchain and cryptocurrencies? The most relevant local and international events, as well as appealing background reports, are presented in a pointed and compact manner in the weekly review.
Selected articles of the week:
In 2024, numerous state-owned banks positioned themselves in Switzerland. The cantonal banks from Lucerne, Zug, St. Gallen, and Zurich introduced their own services related to cryptocurrency trading and custody. PostFinance also integrated digital assets into its offerings. The motivation should be obvious. Banks that do not offer solutions to their clients lose money. According to internal analyses, PostFinance recorded over one billion Swiss francs in outflows to crypto exchanges over five years. Other banks are facing similar situations. Zürcher Kantonalbank identified around 600 million Swiss francs that clients directly withdrew to crypto exchanges. Outflows to general brokers or fintechs with crypto offerings were likely not considered. The true amount could therefore also be over a billion francs. With a crypto trading fee of 1%, the missed income for the bank is likely in the two to three-digit million range. Further figures for the first six months in the crypto business were revealed by Peter Hubli, the “Head of Digital Asset Solutions” at ZKB, for the first time at a panel in Lugano.
Peter Hubli, head of the crypto division at Zürcher Kantonalbank (ZKB), shares insights from the bank’s crypto offering for the first time.
Cryptocurrencies in Retirement Planning
The asset management giant Fidelity Investments expanded its crypto offering this week, allowing investors to directly integrate Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC) into their retirement plans. In the US, there are various retirement plans, including 401(k) plans, pensions, and IRAs, each offering different tax benefits and contribution limits. An IRA (Individual Retirement Account) is a tax-advantaged account to which individuals can contribute money for retirement, either with tax-deferred growth (traditional IRA) or with tax-free withdrawals (Roth IRA). An IRA is similar to Switzerland’s 3a retirement account. Fidelity now offers crypto assets for traditional IRAs, Roth IRAs, and rollover IRAs, with the holdings securely stored in cold wallets.
Asset management giant Fidelity offers tax-advantaged crypto IRAs with Bitcoin, Ethereum, and Litecoin, secured in cold wallets.
Bitcoin: a challenge to the dollar?
The US dollar is widely regarded as the world’s reserve currency, playing a key role in global trade and being held by central banks. However, the growing US deficit poses a threat to this status, as it undermines confidence in the country’s long-term economic stability. This is according to BlackRock CEO Larry Fink in his annual commentary to investors. The United States must pay nearly $1 trillion per year just in interest on its $35 trillion debt. By 2030, mandatory federal spending and this debt service will consume all federal revenues, creating a permanent deficit, according to Fink. If the US does not get its debt under control, America risks losing its dominance to digital assets like Bitcoin – a striking statement from the CEO of the world’s largest asset manager.
Dollar dominance is under pressure due to rising debt. BlackRock continues to expand its crypto business with Bitcoin ETFs.
Solana ETFs coming soon
For just over a year, spot-based Bitcoin ETFs have been trading in the United States. With nearly $100 billion in assets under management, they can be considered a success across the board. The Ethereum ETFs, which were introduced a few months later, had a rather disappointing start. Solana, however, has not even made it to the starting line. The SEC cited unresolved questions regarding the security status of the cryptocurrency as the reason. The new leadership of the agency, however, views the matter differently, suggesting a near-term approval of Solana ETFs. In a conversation with the applicant 21Shares, CVJ.CH learned that the launch is likely to take place in May. However, the demand for Solana ETFs remains difficult to estimate.
The first ETFs based on the cryptocurrency Solana (SOL) could be approved as early as May, according to issuer 21Shares.
Ripple’s ambitious plans
In addition: Ripple is a technology company offering blockchain-based solutions for global payments. XRP is the native cryptocurrency of the network XRPLedger (formerly RippleNet), developed by Ripple. The platform is primarily aimed at banks and large enterprises for payment processing. Ripple is aiming for significant partnerships, working with financial institutions such as Santander, American Express, and PNC. However, the adoption of the blockchain remains cautious. Here’s a look at the company’s plans for the year.
Ripple’s XRP advances as the SEC drops its case, clearing the path for major 2025 upgrades in compliance and tokenization.
