Switzerland’s St.Galler Kantonalbank (SGKB), one of the leading banks in the country, has made a strategic move into the world of cryptocurrency. The bank has joined forces with SEBA Bank, a global institution focused on cryptocurrencies, to offer its customers Bitcoin (BTC) and Ether (ETH) trading services. This partnership will enable SGKB clients to access digital asset custody and brokerage services.
The announcement was made on November 1, with SGKB and SEBA revealing that the new crypto service is now available to select SGKB customers. Prior to the official launch, the service underwent a brief testing period earlier in 2023. Initially, SGKB will support Bitcoin and Ether, but the bank plans to expand its offerings to include other cryptocurrencies based on customer demand.
Established in 1868, St.Galler Kantonalbank is a major regional bank in Switzerland that provides retail and commercial banking services, as well as private and institutional banking. With a reported 53.6 billion Swiss francs ($58.9 billion) in assets under management at the end of 2022, SGKB is the country’s fifth-largest bank. This partnership with SEBA represents their first foray into the digital asset industry, with the aim of allowing banking customers to seamlessly incorporate cryptocurrencies into their investment portfolios.
Falk Kohlmann, the head of market services at SGKB, expressed enthusiasm about offering select clients access to digital assets and the digital economy. Kohlmann emphasized the simplicity of the initial setup, made possible through the collaboration with SEBA Bank. He stated, “We are confident that our clients’ digital assets are protected by the custody of a professional and certified provider with extensive experience in this field.”
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SEBA, SGKB’s crypto partner, is a global Swiss-regulated bank that specializes in managing, investing, and storing cryptocurrencies, nonfungible tokens (NFTs), and other assets. After obtaining a banking license from the Swiss Financial Market Supervisory Authority in 2019, SEBA has actively partnered with major private and retail banks, including LGT Bank Liechtenstein and Bank Julius Baer, to offer crypto services.
Switzerland’s crypto ecosystem has experienced rapid growth, with many local banks introducing cryptocurrency services. In September 2023, Dukascopy Bank, a licensed Swiss bank, launched its crypto-enabled services, which include marginal trading and online retail banking accounts. The chief brokerage officer of Dukascopy Bank emphasized the ongoing significance of cryptocurrencies in today’s world and the value of offering crypto-related services through a regulated bank.
This move by SGKB and SEBA further solidifies Switzerland’s position as a global hub for cryptocurrency innovation and adoption. The country’s banking sector has embraced the potential of digital assets, reflecting the evolution of the financial industry as it adapts to the digital age. By offering its customers access to cryptocurrency trading and custody services, SGKB aims to provide a seamless and secure platform for clients to explore the opportunities presented by this emerging asset class.
As the demand for cryptocurrencies continues to rise, it is expected that more traditional banks will follow in SGKB’s footsteps and integrate these digital assets into their offerings. This trend reflects the growing acceptance and recognition of cryptocurrencies as a legitimate investment option. By partnering with reputable institutions like SEBA, banks can leverage their expertise and experience to provide their customers with reliable and secure access to the world of cryptocurrencies.
In conclusion, SGKB’s entry into the cryptocurrency market through its partnership with SEBA Bank marks a significant milestone for both institutions and the Swiss banking sector as a whole. By offering Bitcoin and Ether trading services to its customers, SGKB aims to cater to the evolving needs and interests of its clientele. This move highlights Switzerland’s reputation as a progressive and innovative financial hub, positioning it at the forefront of the global cryptocurrency revolution.
