One of the biggest Swiss banks by assets held, Zuger Kantonalbank, has ventured into cryptocurrency. The bank, which holds over $20 billion in assets, recently started trading and storing XRP and other crypto tokens.
Zuger’s presence in the crypto industry marks Switzerland’s first cantonal bank to initiate a crypto offering.
Zuger Kantonalbank Launches Crypto Trading and Storing Services
Zuger’s move into the crypto industry came through its partnership with Sygnum Bank, a leading virtual asset bank. Though Signum Bank revealed the collaboration deal earlier this month, the announcement went unnoticed.
However, Crypto Eri, a prominent XRP community member, took to X to bring the development to light again on October 19.
This month:
Zuger Kantonalbank Launched Crypto Asset Trading and Storage — #BTC #ETH #XRP #LTC #UNI #MATIC
The Zug Bank has an unlimited government guarantee.https://t.co/VuKttUFzDH
Fun Trivia: 1 in 8 people in Zug are millionaires.🧐 pic.twitter.com/ogB7e2fust
— 🌸Crypto Eri 🪝Carpe Diem (@sentosumosaba) October 19, 2023
According to his post, Crypto Eri stated:
The Zug Bank has an unlimited government guarantee.
Notably, cantonal banks are government-owned commercial banking institutions. According to the announcement, Zuger Kantonalbank’s newly introduced crypto offering comprises six different crypto assets: XRP, Litecoin (LTC), Ethereum (ETH), Bitcoin (BTC), Uniswap (UNI), and Polygon (MATIC).
Also, the canton bank will deploy robust security measures to ensure maximum investor protection in its crypto services. Zuger Kantonalbank was founded in 1892 and is the oldest Swiss cantonal bank.
According to data from the bank’s financial record, it boasts CHF 18.6 billion (equivalent to $20.6 billion) in assets and is one of the biggest banks in the country. Zuger’s operations cut across different aspects of banking services with diversification in the local economy and community within the Zug region.
Significance of Zuger’s Partnership with Signum Bank in Its Crypto Debut
Zuger’s collaboration with Signum Bank forms part of the essential facilitator for its move into the crypto space. The bank will leverage Sygnum’s API-powered business-to-business (B2B) protocol to facilitate its crypto trading and other related services.
More than fifteen Swiss banks and other prominent financial institutions globally utilize the protocol in their operations. Moreover, Zuger Kantonalbank will enable customers easy access to its crypto trading services through its mobile banking platform.
Information on the bank’s official website shows the cantonal bank has started its crypto offering, with initial support for the stated six cryptocurrencies. Further, the bank’s offering of the crypto services is solely for its customers with debit and custody accounts.
It allows clients to buy, sell, and store XRP and other supported tokens via Zuger’s mobile platform. There’s no need for any third-party crypto exchange or external wallet to complete such operations on the platform. Zuger’s recent interest and initiative in crypto assets reflects the increased institutional adoption rate of cryptocurrencies.
Several asset managers like BlackRock, Wisdom Tree, and others have shifted their focus to crypto. Many submitted applications for spot BTC ETFs awaiting the SEC’s approval. Meanwhile, XRP has been in the limelight following Ripple’s victory against the US Securities and Exchanges Commission.
Recently, the largest US-based crypto exchange, Coinbase, introduced XRP futures contracts for non-US Advanced users. As of 06:50 Am EST on October 19, XRP is trading at $0.4825, reflecting a drop of 1.45% over the past 24 hours. Its 7-day price action indicated a slight surge of 0.72%.
