Zuger Kantonalbank Expands Cryptocurrency Offerings to Include Cardano (ADA) and Avalanche (AVAX)

This strategic move is facilitated through a partnership with Sygnum, a global digital asset banking group, and reflects the bank’s commitment to meeting the evolving demands of its clientele.

Zuger Kantonalbank has added Cardano (ADA) and Avalanche (AVAX) to its cryptocurrency offerings, the bank announced Monday.

The bank, which is the cantonal bank of the central Swiss canton of Schwyz, first launched cryptocurrency products in 2023 with Bitcoin (BTC) and Ethereum (ETH). It has since expanded to include Solana (SOL), XRP, and others.

The move comes as part of the bank’s broader efforts to provide customers with a variety of investment opportunities. It also follows the launch of its mobile-friendly crypto trading service earlier this year.

“We are constantly striving to provide our customers with the best possible products and services,” said a spokesperson for Zuger Kantonalbank. “In response to the strong demand from our customers for additional cryptocurrencies, we are pleased to announce the addition of Cardano and Avalanche to our e-banking offering.”

The bank’s crypto products are powered by Sygnum, a global digital asset banking group. Sygnum’s fiat-digital asset gateway allows Zuger Kantonalbank customers to easily use their fiat balances to buy and trade cryptocurrencies directly on the bank’s e-banking and mobile banking platforms. This integration ensures a seamless and user-friendly experience, allowing clients to manage their digital assets within the familiar environment of their principal bank.

Crypto assets under Zuger Kantonalbank’s offering are secured through Sygnum’s fully integrated institutional-grade custody platform. This platform features a multi-layered security framework integrating software and hardware controls, robust governance measures, and regular external audits. Notably, client assets are held off-balance sheet and are bankruptcy remote, effectively mitigating counterparty risk.

“We are proud to partner with Zuger Kantonalbank to provide its customers with access to the leading digital assets in a secure and compliant manner,” said Martin Gächter, Head of Institutional Markets at Sygnum. “Our partnership reflects the increasing demand from institutional investors for sophisticated digital asset banking solutions.”

The expansion of Zuger Kantonalbank’s cryptocurrency services also follows the introduction of new crypto regulations in Europe and the United States.

In Europe, the Markets in Crypto-Assets Regulation (MiCA) will set common rules for the issuance, trading, and use of crypto assets. The regulation is expected to come into force in 2025.

In the United States, the establishment of a Strategic Bitcoin Reserve has signaled a more accepting stance toward cryptocurrencies. This development could pave the way for other institutions to follow suit, integrating Bitcoin and other digital assets into their investment strategies.

Overall, the inclusion of Cardano and Avalanche in Zuger Kantonalbank’s cryptocurrency offerings marks a significant step in the integration of digital assets within traditional banking frameworks. This move is a testament to the bank’s commitment to providing cutting-edge financial solutions that cater to the evolving needs of its clients in the dynamic digital asset landscape.