Government-Owned Swiss Bank to Provide Custodial Services for Cryptocurrencies
Godfrey Benjamin Aug 05, 2020 03:50
With the readiness of government-backed Swiss bank, bank Basler Kantonalbank (BKB) to offer crypto custodial services, the financial service sector is an inch closer to driving mainstream adoption of blockchain technology
The government-owned Swiss bank, bank Basler Kantonalbank (BKB) is set to offer cryptocurrency custodial services as well as trading service, a landmark move in the crypto-centric nation. The project is a collaboration between a BKB subsidiary and Bank Cler, a Swiss Banking Group.
A Basler Kantonalbank spokesperson said:
“In the BKB Group, we are working to offer our clients a solution for the trading and deposit of selected cryptocurrencies. As an established regional (Basler Kantonalbank) and indeed national (Bank Cler) banking group, we wish to give our clients secure access to these new financial products.”
Following the approval by the US bank regulator, the US Office of the Comptroller of the Currency (OCC), allowing US banks to offer custody of digital currencies, the Swiss bank now ranks as one of the pioneers of the laudable move.
Increased Reawakening to the Prospects of Blockchain Technology
Financial institutions around the world are getting a positive reawakening to the potentials of blockchain technology when adopted and integrated into their business processes. The Bank of America in a bid to wedge its weight in the blockchain ecosystem announced job openings for blockchain veterans back in Q3 2019.
Besides the proliferation of such blockchain centric financial institutions such as the Silvergate Bank who delved into crypto lending services, multinational banks are forming strategic alliances in relation to blockchain technology. A typical example was seen when Deutsche Bank joined JP Morgan’s Blockchain Platform.
From use cases ranging from clearing and settlement, to trade finance, the obvious superiority of blockchain technology is being currently harnessed by financial institutions around the world.
To level the playing ground for all firms adopting blockchain technology, most country central banks are helping to create flexible regulations while many others including the Bank of France are experimenting with the development of government-backed digital currencies. In all, the mainstream adoption of blockchain technology in the financial service sector may be happen just in a matter of years
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