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The Luzerner Kantonalbank AG (LUKB) has become the first major traditional bank in Switzerland to enter the cryptocurrency bandwagon with the launch of Bitcoin trading and custody services.
Key Notes
The Luzerner Kantonalbank AG (LUKB) has announced the launch of crypto trading and custody services to its retail and institutional customers.The bank has assured users that they can transfer their digital assets from their external wallet addresses directly to their securities account. Initially available for only Bitcoin and Ethereum, the bank has added support for three more digital assets including Polygon (MATIC) and the popular USDT Coin (USDC).On Tuesday, September 24, the Luzerner Kantonalbank AG (LUKB) made history as the first traditional bank in Switzerland to roll out crypto deposits and withdrawal services for both retail and institutional customers in the region.
The move comes less than three months after the company released its crypto investment plan in June which allowed customers to make regular and automated investments in digital assets with as little as 10 francs. According to the firm, this initiative is fully integrated into its core banking system and e-banking services, both on mobile and desktop platforms.
LUKB Expands Access to Crypto Trading
Starting October 1, 2024, LUKB will expand its crypto services to allow customers to transfer assets like Bitcoin BTC $62 804 24h volatility: -0.5% Market cap: $1.24 T Vol. 24h: $28.04 B and Ethereum ETH $2 597 24h volatility: -1.8% Market cap: $312.70 B Vol. 24h: $16.75 B directly to their bank’s securities accounts from personal crypto wallets. In addition to BTC and Ether, the bank has added support for other digital assets such as Chainlink LINK $11.36 24h volatility: -0.3% Market cap: $7.14 B Vol. 24h: $365.72 M , Polygon MATIC $0.40 24h volatility: -0.9% Market cap: $1.20 B Vol. 24h: $5.43 M , and the stablecoin USD Coin USDC $1.00 24h volatility: 0.0% Market cap: $35.93 B Vol. 24h: $6.26 B .
However, it’s important to note that the minimum transfer amount is set at 20,000 francs. Additionally, while transferring of digital assets to the bank is possible, the company said the infrastructure to withdraw assets to external wallets is still under development.
“We are working on making it possible to transfer your crypto account at LUKB to an external wallet via e-banking. At the moment, delivery is only possible under certain conditions. If you would like to transfer cryptocurrencies to an external wallet today, please contact your customer advisor or send us a message in e-banking,” the bank said.
The Swiss bank emphasized that these services will be introduced gradually, complementing its existing offerings in crypto trading and custody.
Secure Custody for Digital Assets
For its custody services, LUKB assures customers that their cryptocurrencies are stored in a safe and regulated platform. According to the bank, users’ assets are held in an ISAE 3000-certified infrastructure, which is recognized by the International Federation of Accountants (IFAC).
Originally designed for traditional investments, the storage infrastructure known as the LUKB depot has been adapted to include digital assets. The bank explained that customers can activate the platform for crypto trading and storage in just three simple steps.
Meanwhile, LUKB’s crypto journey began in August 2023 when it partnered with FireBlocks, a Web3 company that simplifies the creation of blockchain-based products. The collaboration allowed the bank to develop the necessary infrastructure for its crypto trading and custody services.
The First Traditional Bank
At the time, LUKB revealed it was working with FireBlock and other companies such as Sygnum, a Swiss fintech bank regulated by local financial authorities and Wyden, a fintech firm focused on institutional crypto trading.
Together, the three companies have built a robust platform for LUKB’s crypto services with each of them tasked with separate responsibilities.
After more than a year of development, LUKB now proudly stands as the first traditional financial institution in Switzerland to offer a comprehensive suite of crypto trading and custody services.
“The introduction of deposit and withdrawal underlines LUKB’s claim to play a leading role in the cryptocurrency business. We are proud to be the first traditional bank to offer our customers this service,” said Marcel Hurschler, CFO of LUKB.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Chimamanda is a crypto enthusiast and experienced writer focusing on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed an interest in the emerging economy. She combines her passion for blockchain technology with her love for travel and food, bringing a fresh and engaging perspective to her work.
