Swiss Banks Enter the Age of Bitcoin

DAVOS - Switzerland's banking industry has long been known to privately safeguard wealth, so some bankers see bitcoin as a natural fit for the nation's financial sector.

Although such bankers may still be a minority, Zurich-based SEBA Bank AG opened in November 2019 with a universal banking license and a suite of services ranging from fiat storage to crypto custody, a crypto-connected debit card that automatically converts to fiat on the backend for regular shopping and crypto-trading options through the bank's mobile app.

SEBA CEO Guido Bühler said the bank raised 100 million Swiss francs from angel investors like Guy Schwarzenbach, founder of Black River Asset Management.

The private bank Falcon Group, for example, launched bitcoin management services in 2017.

Matthew Blake, the World Economic Forum's monetary systems lead, described crypto-friendly, fully licensed banks as an emerging trend.

The Swiss crypto startup Bitcoin Suisse has also applied for a universal banking license with the goal of offering everything from staking services to loans.

"We're not applying for a banking license just to be like every other bank. We are pioneers at heart," said Bitcoin Suisse marketing lead Ian Simpson.

Among such banks so far, SEBA offers a unique ability to hold a variety of many fiat currencies, including American dollars, Hong Kong dollars and Singaporean dollars, then instantly trade cryptocurrencies like bitcoin, ether and Stellar lumens.

"There's always going to be aspects that banks are required for, and the first one is the storage of your private key."

For Schwarzenbach, who described himself as a libertarian who runs his own Lightning Network node that he made using a Raspberry Pi, bitcoin banking makes sense for the physical security benefits.