Through a partnership with Swiss SEBA Bank, the Cantonal Bank of Saint Gall (St. Galler Kantonalbank, SGKB) is the next state-owned bank to offer regulated crypto custody and trading services to its customers. The offering initially includes Bitcoin (BTC) and Ether (ETH).
The alliance of St. Galler Kantonalbank with crypto bank SEBA took place earlier this year. After the short implementation phase, SGKB now offers trading and custody of digital assets to selected customers. The immediate launch of a similar crypto offering by Zuger Kantonalbank at the end of October has forced other cantonal banks to act.
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Collaboration between crypto and cantonal banks
Originally, Luzerner Kantonalbank (LUKB) got the ball rolling with its announcement in August. In cooperation with the Swiss crypto bank Sygnum, the bank was preparing to be the first state-owned institution to launch a trading offering in early 2024. A few weeks later, Zuger Kantonalbank maneuvered itself into pole position with an immediate launch - also with Sygnum as a partner. So far, the initiative has paid off, and customer demand has been encouraging in the first few weeks, as the cantonal bank confirmed to CVJ.CH.
St. Galler Kantonalbank has chosen SEBA, another crypto bank, as its companion. Both SEBA and Sygnum became the first crypto startups to receive a banking license from FINMA in 2019. As a result, SGKB clients gain access to a regulated trading and custody environment.
"We are pleased to offer access to digital assets and the digital economy to a select group of customers. By working with SEBA Bank, we have created an uncomplicated entry point. Thanks to this, we have the opportunity to adapt to the needs of our customers and grow." - Falk Kohlmann, Head of Market Services at St.Galler Kantonalbank
Limited selection of crypto assets
While Zuger Kantonalbank allows customers to trade in six cryptocurrencies, SGKB is limiting its offering to the two largest for now: Bitcoin (BTC) and Ether (ETH). However, investments in other cryptocurrencies are also possible upon request. According to the SEBA website, the crypto bank offers "cold storage" custody for Bitcoin (BTC), Ether (ETH), USD Coin (USDC), Uniswap (UNI), Yearn Finance (YFI), Synthetix (SNX), Aave (AAVE) and Chainlink (LINK).
The digital assets will be seamlessly integrated with traditional assets, allowing SGKB clients to add their cryptocurrencies to their existing portfolios through the usual interfaces. Now it remains to be seen when the next state banks will follow suit. With SGKB offering its services as the fifth largest cantonal bank, the pressure to position themselves in the crypto space is growing.
