The gap between banks and the crypto space has bridged considerably, hinting that the market has matured. Several new banking institutions are venture into offering crypto-related services, while some are developing their own digital currency. The latest to start offering crypto services to its clients is Swiss banking giant Basler Kantonalbank (BKB).
With over 27.305 billion Swiss francs ($29.622 bln) worth of assets under its management, Basler Kantonalbank is a government-owned banking giant that will be offering cryptocurrency trading and custodial services next year via its Bank Cler subsidiary.
The news first reported by Swiss newspaper NZZ am Sonntag states that among the 24 government-owned banks Basler Kantonalbank would be the first to offer crypto-related services.
Natalie Waltmann, a Bank Cler spokesperson, informed that Alain Kunz, the former CEO of Tokensuisse, a crypto brokerage, and asset management service prodder, will be leading the digital assets wing for the bank.
Cler, formerly known as Bank Coop, also possesses its own banking license separate from BKB.
Waltmann concluded that the recent move comes at a time when the crypto space is booming and there is heavy demand for the new era of asset classes amongst the bank’s younger clientele.
Furthermore, the Swiss crypto market is dominated by crypto banks Seba and Sygnum, while traditional lenders like Falcon and Maerki Baumann have also been more receptive than major banks UBS and Credit Suisse.
Crypto adoption on the rise
Switzerland is one of the upcoming crypto hotspots on a global level and has a high rate of crypto adoption among the people.
As previously reported by The Daily Chain, Switzerland’s Incore bank, partnered with Kraken, one of the largest exchanges in Europe based on volume, to offer its clientele the option to fund their crypto accounts in four major currencies, namely CAD, CHF, EUR, and GBP directly from their InCore bank accounts.
On an international level, British banking giant Standard Chartered, has also ventured into cryptocurrencies with its Singapore-based venture arm SC Ventures, to deploy a crypto custody solution for institutional-grade clients.
Alex Mason, head of SC ventures had previously noted that the crypto market was relatively new, a trustworthy custodial solution was necessary to encourage adoption. He said:
“We believe that digital assets are here to stay as an asset class… We are developing a venture to meet the demands of institutional investors for an end-to-end institutional-grade custodian of digital assets, which meets regulatory standards.”