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It offers institutions a complete digital asset service in a secure environment

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With the growing interest of institutional clients in the opportunities that cryptocurrencies can offer, Swissquote has built a complete offering of digital assets to meet their requirements.

As a pioneer in electronics FX space for more than two decades and now in the digital asset arena, Swissquote aims to become the most reliable cryptocurrency partner for institutional clients in Switzerland and beyond. With USD 2 billion of digital assets under management, the bank has built a complete digital asset offering that meets the expectations of a discerning clientele willing to invest in a promising asset class full of opportunities.

We build on knowledge honed over many years in electronics FX Swissquote started offering cryptocurrency trading options to its retail clients in 2017 and expanded to its institutional clients in 2020. The offer includes 24 cryptocurrencies to trade against OUR dollar, as well as exchange-traded products and certificates that allow clients to invest in a basket of cryptocurrencies in addition to the technology behind them.

Maxime Mordelet, Swissquote Bank

“The evolution of our cryptocurrency offering has its origins in the initial appetite we had for this asset class and the disruptive technology behind it,” says Maxime Mordelet, Institutional FX liquidity manager at Swissquote. “We are among the most innovative banks in Europe and it is natural for Swissquote to invest in current and future markets.

“As a developer-minded bank, we understand digital asset technology well. Swissquote uses multiple encryption technology to ensure that the storage and transfer of assets remains secure and reliable.”

Financial institutions in Switzerland – and in particular private banks that serve high net worth individuals – have already expressed interest in Swissquote’s digital asset offering.

Building on the skills and experience it has gained in providing cryptocurrency solutions to its retail client base, Swissquote has designed a digital asset offering that provides institutions with a complete solution that includes everything from custody to execution, settlement and settlement.

Thanks to the relationships she has built over more than two decades of e-FX space, Swissquote is able to offer robust liquidity from the main non-bank liquidity providers in the market, as well as from crypto exchanges and over-the-counterOTC) players that can be relied upon regardless of market volatility.

And since Swissquote is one of the highest capital ratio banks in Switzerland and one of the few listed banks to offer a global cryptocurrency offering, institutional players can be sure they are trading with a solid counterparty.

To alleviate institutional clients’ concerns about the security of their digital assets, Swissquote has built an escrow solution that is secure and competitive. Clients’ funds are held in wallets and accessed through a strict three-step verification process that protects their digital assets from misuse.

The process of transferring assets between cold wallets and trading accounts – or hot wallets – is carried out by Swissquote to settle transactions behind the scenes, so clients can trade at will without having to initiate these transfers themselves.

It is important to note that all hardware security modules used by Swissquote are located in Switzerland and the bank owns the private keys.

“Our custody solution is based entirely in Switzerland, so security is not based on speed of access to funds. Moving assets out of cold storage requires careful coordination between multiple parties,” explains Mordelet. “In addition to competitive pricing, our clients can be confident that they will have their assets in custody located in the most secure location in the world.”

In an asset class that has faced obstacles in various places around the world, the solidity of the Swiss financial market and its open regulatory regime have undoubtedly made the country one of the most favorable environments for the development of digital assets. The Swiss Financial Market Supervisory Authority (Finma) recognizes the innovative potential of new technologies for financial markets and recently issued its first license for a digital securities trading infrastructure.

“Switzerland is one of the most advanced crypto countries in Europe in terms of regulation and acceptance of cryptocurrencies,” says Mordelet. “The regulatory setup is clear and well anchored.”

Benefiting from this regulatory certainty, Swissquote became the first Finma-regulated Swiss bank to offer cryptocurrency trading – for both its retail and institutional clients – and the first bank in the country offering digital assets to become a regulated depository bank.

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