Switzerland’s Largest Cantonal Bank Launches Bitcoin and Ethereum Trading and Custody Services

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The financial landscape in Switzerland has taken another bold step into the digital future, as Zürcher Kantonalbank (ZKB), the largest cantonal bank in the country, officially launched its Bitcoin and Ethereum trading and custody services. This move marks a significant milestone in the integration of traditional banking infrastructure with blockchain-based assets, reinforcing Switzerland’s reputation as a global leader in financial innovation and crypto-friendly regulation.

👉 Discover how traditional banks are embracing digital assets in 2025.

A New Era for Swiss Banking and Cryptocurrency

On September 4, ZKB announced that its clients can now trade Bitcoin (BTC) and Ethereum (ETH) around the clock via its online and mobile banking platforms. In addition to trading capabilities, the bank offers secure custody solutions, eliminating the need for users to manage their own private keys—a major barrier to entry for many retail investors concerned about security.

This service is not limited to individual clients. ZKB is also providing a B2B (business-to-business) solution, enabling other Swiss banks to offer crypto trading and secure storage to their own customers. The first institution to adopt this service is Thurgau Cantonal Bank, which accesses the platform through Crypto Finance AG—a regulated fintech firm and subsidiary of Deutsche Börse Group.

ZKB’s entry into the crypto space was highly anticipated. While the launch came slightly later than expected, it positions ZKB among the growing list of major Swiss financial institutions embracing digital assets. This includes other cantonal banks such as Zug, St. Gallen, and Lucerne, which have already introduced similar offerings.

Pioneering Blockchain Innovation

ZKB’s involvement in blockchain technology dates back several years. In 2021, the bank participated in the world’s first fully digital bond issuance. More recently, in 2023, it served as a joint lead manager for a digital bond issued by the Swiss National Bank using central bank digital currency (CBDC). These initiatives demonstrate ZKB’s long-term commitment to modernizing financial infrastructure through blockchain innovation.

The launch of direct crypto trading and custody services reflects a natural evolution of this strategy—one that aligns with both customer demand and regulatory clarity.

Switzerland’s Progressive Crypto Regulatory Framework

A key factor enabling traditional banks like ZKB to enter the crypto market is Switzerland’s forward-thinking regulatory environment. The Swiss Financial Market Supervisory Authority (FINMA) has been a global pioneer in establishing clear legal frameworks for blockchain and digital assets.

Under regulations such as the Blockchain Act and the Financial Market Infrastructure Act (FMIA), FINMA provides detailed guidelines for crypto-related businesses. Companies must obtain specific licenses—such as the Fintech License or DLT Market Infrastructure License—to operate legally. This structured yet flexible approach fosters innovation while ensuring investor protection and market integrity.

These policies have made Switzerland one of the most attractive jurisdictions for blockchain startups and institutional investors alike. The country’s regulatory clarity reduces uncertainty, allowing traditional financial institutions to enter the space with confidence.

The Rise of Crypto Valley: Zug as a Global Blockchain Hub

Central to Switzerland’s crypto success story is the canton of Zug, often referred to as “Crypto Valley.” Known for its early adoption of cryptocurrencies and blockchain technology, Zug has become a magnet for leading blockchain organizations.

Major players such as the Ethereum Foundation and Cardano (IOHK) have established headquarters or significant operations in the region. This concentration of talent, capital, and innovation has turned Zug into a global epicenter for blockchain development.

Several factors have contributed to Crypto Valley’s rapid growth:

This ecosystem thrives on trust, transparency, and technical excellence—values that align closely with both Swiss financial traditions and decentralized technologies.

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Advancing Digital Finance: SIX Digital Exchange and Asset Tokenization

Beyond banking services, Switzerland continues to lead in institutional-grade digital asset infrastructure. The SIX Digital Exchange (SDX) is a prime example—it’s the world’s first regulated digital asset exchange, allowing for the issuance, trading, and settlement of tokenized securities such as digital bonds.

ZKB has played an active role in SDX’s development, contributing to pilot projects involving tokenized assets and CBDCs. These experiments are paving the way for broader applications, including tokenized real estate, equities, and even cross-border payments.

The concept of asset tokenization—converting physical or traditional financial assets into digital tokens on a blockchain—is expected to revolutionize finance. It increases liquidity, reduces transaction costs, and enables fractional ownership. With strong regulatory support and technological readiness, Switzerland is at the forefront of this transformation.

Global Influence and Future Outlook

Switzerland’s model of balanced regulation and innovation is now being studied and emulated worldwide. Regulatory bodies in the European Union and the United States are drawing inspiration from FINMA’s approach when crafting their own crypto frameworks.

As more countries seek to integrate digital assets into their financial systems, Switzerland stands out as a proven blueprint for responsible innovation.

Looking ahead, the next phase of growth will likely focus on:

Traditional banks like ZKB will play a crucial role in bridging legacy finance with next-generation technologies.

Global Banking Embraces Digital Assets

ZKB is not alone in recognizing the transformative potential of cryptocurrencies. Major global banks are increasingly entering the space:

These moves signal a broader shift: digital assets are no longer niche—they are becoming part of mainstream finance.

👉 Explore how traditional finance is converging with blockchain technology today.

Frequently Asked Questions (FAQ)

Q: Is ZKB the first Swiss bank to offer crypto services?
A: No. While ZKB is one of the largest cantonal banks to launch such services, others like Zug Cantonal Bank and St. Gallen had already introduced crypto trading earlier.

Q: Can all ZKB customers access Bitcoin and Ethereum trading?
A: Yes, both retail and institutional clients can trade BTC and ETH through ZKB’s digital platforms, subject to compliance checks.

Q: How does ZKB ensure the security of stored cryptocurrencies?
A: ZKB uses institutional-grade cold storage solutions with multi-signature authentication and insurance coverage to protect client assets.

Q: What role does FINMA play in regulating crypto services?
A: FINMA oversees licensing, compliance, and anti-money laundering (AML) standards for all crypto-related financial activities in Switzerland.

Q: What is asset tokenization?
A: It’s the process of converting ownership rights of real-world assets (like real estate or bonds) into digital tokens on a blockchain, enabling easier transfer and fractional ownership.

Q: Why is Switzerland called a crypto-friendly country?
A: Due to its clear regulations, political stability, strong financial infrastructure, and supportive government policies toward blockchain innovation.

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