A growing number of banks worldwide have announced their plans to launch cryptocurrency-related products for their customers. Swiss bank Bordier & Cie ScmA partnered with Sygnum Bank, which will allow its customers to buy, sell and store crypto assets.
It seems that financial institutions worldwide are ready to embrace cryptocurrencies. Several banks have already announced that they are studying or preparing to launch products related to the cryptocurrency market. The most recent one is Swiss bank Bordier & Cie ScmA, which will offer cryptocurrency services to all its customers.
The major banks around the world are looking to enter the world of cryptocurrencies, which was unthinkable just a few years ago. Bitcoin’s big bullish rally since the end of last year turned that situation around. Several of the world’s leading financial institutions have now started to develop their products for the cryptocurrency market.
Even banks that have shown their skepticism about cryptocurrencies are beginning to plan their cryptocurrency strategies. Among those financial institutions that have changed their attitude towards crypto assets are JPMorgan and Goldman Sachs. The progress that other banks have made in this sector puts pressure on them since they could miss an important opportunity to earn profits.
This situation is particularly true in the case of banks in Swiss. The Helvetic country has remained at the forefront of regulations in the world of cryptocurrencies and blockchain technology in recent years. For that reason, its banks have greater freedom to create cryptocurrency-based financial products. Besides, they do not have to follow cumbersome procedures, like in other countries.
Swiss Bank Launches Its Cryptocurrency-Related Products
That advantage has allowed Bordier & Cie ScmA to announce the launch of its cryptocurrency-related products. From now on, they will include Bitcoin, Ethereum, Bitcoin Cash, and Tezos on their platform. To that end, they partnered with Sygnum Bank, Switzerland’s first cryptocurrency bank. The latter will be in charge of the technical aspects of these products, which include the custody of crypto assets and the provision of liquidity.
In this way, the bank’s customers will be able to buy, sell and store their crypto assets within its platform. The financial institution considers that this movement could be related to the increase in the market capitalization of cryptocurrencies. This has led to a significant increase in demand for these products from their customers.
The Swiss bank said that “the high growth of cryptocurrencies and their low correlation with traditional assets make them a powerful tool.” He added that, in the context of a portfolio, they help “improve diversification and achieve higher risk-adjusted returns.”
They particularly mentioned Bitcoin, which many view as the new “digital gold” for its ability to hedge against inflationary pressure. In that sense, they explain that the pioneering cryptocurrency “has seen strong institutional adoption as an alternative investment.”
The growing relevance of cryptocurrencies worldwide has led the most important financial institutions to incorporate them into their services. Even skeptical banks have finally accepted to use them to meet the demand from their customers.
By Willmen Blanco