by
Matthew Allen
My articles My siteAbout meMy booksMy videos
Follow on:

Digital bank Swissquote is expanding its crypto business by delving into the new world of blockchain-compliant digital assets. It appears that they are not alone: several high street banks also plan to launch “tokenization” services.

Swissquote is teaming up with digital assets service provider Taurus to allow clients to issue and invest in tokenized assets. Blockchain – or other distributed ledger technology systems – promises to simplify the process of creating a wide range of assets, from company shares to fine wines and traditional securities, and to speed up transactions.

“Many cantonal banks, retail banks and large systemic banks will be entering this space in the near future,” Taurus co-founder Lamine Brahimi tells me. “We see increasing interest”. He cites Switzerland’s recent introduction of new legislation that welcomes blockchain finance into the legal code.

It is no secret that the established banking scene is looking at ways of jumping into the digital assets space. Bern’s Cantonal Bank (BEKB) plans to releasing its own tokenization platform by the end of June while UBS has advertised for the position of Head of Blockchain Tokenization Consulting.

Until now, only the so-called “crypto banks” SEBA and Sygnum, plus blockchain specialists like Mt Pelerin, Taurus, Wecan Tokenize and TokenTrust, have been the early movers. Swiss stock exchange operator SIX Group hopes to launch a digital assets trading platform in the coming months.

While most high street banks still turn their noses up at cryptocurrencies, such as bitcoin, they appear to be increasingly convinced that blockchain, can save time and money in the securities trading business.

Swissquote now has a foot in both camps. It already allows clients to trade in cryptocurrencies. By the end of February, it held CHF1.8 billion worth of clients’ cryptocurrencies in custody – up from CHF1 billion at the end of 2020. The bank forecasts revenues from this business line to double this year to CHF32 million.

“With Taurus’ products, we can offer our customers an expanded range of investment opportunities in the field of digital assets,” stated deputy CEO Paolo Buzzi on Tuesday.

It has an agreement to use three Taurus products to create tokenized securities, securely store them, interact with Ethereum smart contracts (which set the automated terms and conditions of the assets) and connect with other blockchain networks. “We allow clients to handle any type of corporate action around digital assets,” says Brahimi.

You Might Also Like

Weekly SNB Sight Deposits and Speculative Positions: SNB selling euros and dollars

2021-04-12

Update April 12 2021: SNB selling euros and dollars. Sight Deposits have fallen: The change is -0.5 bn. compared to last week, this means the SNB is selling euros and dollars.

The Swiss textile machinery industry has a China dilemma

2021-03-31

Amid allegations of forced labour involving Uyghur and other minorities in the garment supply chain, the Swiss textile machinery sector faces thorny questions about its ties to and reliance on China. In 2014, the same year the Swiss-China free trade deal went into force, a group of industry colleagues including a representative of the Swiss firm Uster Technologies visitedExternal link cotton gins and spinning mills in Xinjiang, Western China.

Electric cars are on the way, but is Switzerland ready?

2021-03-30

Last year saw a surge in new electric vehicle (EV) sales worldwide and Switzerland was no exception. But the experience of frontrunner countries like Norway shows that some things will have to change if the Swiss electric car revolution is to keep pace in the years ahead and reduce carbon emissions.

How the Swiss central bank could control the cost of pandemic debt

2021-03-18

The cost of paying off spiralling national debt in the United States and Switzerland is rising as interest rates increase. This makes the financing of pandemic expenditure more expensive. That’s not a problem in Japan where the central bank is holding interest rates in check. Would the Japanese recipe also be something for Switzerland?

Switzerland gears up to place robots in classrooms

2021-03-02

Covid-19 has accelerated the transition to online teaching, raising questions about the role of robots in classrooms. Switzerland is rolling out its own robot learning programs, but it’s still a long way off before they will replace teachers.

Swiss tourism boss says ski resort openings have been justified

2021-02-23

The head of the Switzerland Tourism organisation reckons the decision to open ski resorts in the country this winter has – so far – proven to be a good one.

Five lessons from the Swiss ‘responsible business’ vote

2020-12-01

The battle over the responsible business initiative is now over. The way the campaign was managed and how the issue was eventually decided says a lot about Switzerland.

French blockchain firms offer tracing for Swiss watches

2020-11-29

The market for second-hand luxury watches is booming. But for the average consumer, it is not easy to tell a fake from the genuine article and determine the real value of a particular timepiece. Certificates based on blockchain technology could provide more transparency.