LGT Bank, the largest bank in Liechtenstein, recently announced the commencement of cryptocurrency services to its clients. Therefore, LGT Bank clients can make transactions in the world’s two-largest cryptocurrencies by market capitalisation, Bitcoin and Ethereum.
According to an official report by the bank on Wednesday, 5th May 2022, the initiative prompted LGT Bank to partner with Swiss cryptocurrency bank SEBA Bank, thereby acting as a broker and custodian on behalf of its clients.
There has been a rise in the demand for digital assets. However, few clients understand how the digital financial sector operates, leading to LGT Bank adopting cryptocurrency offerings.
Roland Matt, CEO of LGT Bank, Liechtenstein, pointed out the bank’s excitement in offering its clients a convenient means to invest in the developing market while focusing on investors’ protection, adding:
“We worked intensively on this offering. However, cryptocurrencies are still in a stage of dynamic development. LGT therefore first created the corresponding, necessary processes and framework for this type of investment.”
It is important to note that LGT is the largest bank in Liechtenstein with a market share of 46%, according to data from the Corporate Finance Institute.
Details of the Digital Asset Offerings
LGT Bank allows cryptocurrency investors to undergo procedures similar to traditional financial instruments. Additionally, investors receive the same documentation for their tax returns when investing in Bitcoin and Ethereum through the Liechtenstein-based bank.
“We have the expertise, established processes and, above all, a custody solution that is ISAE-certified and established by independent bodies. The range of services combined with the highest security standards makes SEBA Bank’s service offering unique, and we are very pleased to be able to use our expertise to support LGT in expanding its services for digital assets,” Franz Bergmüller, CEO of SEBA Bank, said.
According to the announcement, the newly-launched service will only be available to Switzerland and Liechtenstein residents.
However, the announcement adds that plans are being made to launch Bitcoin and Ethereum services to LGT Bank clients based in other regions outside Liechtenstein and Switzerland.
Financial Institutions Adopting Crypto Services Including Bitcoin
Bitcoin and Ethereum have grown in popularity and have also attracted the attention of top financial institutions. In addition, more businesses and merchants are integrating cryptocurrency into their payment systems.
Banks fear that not offering crypto-related services could see their clients move over to their competitors, ready to make transactions more accessible for more customers.
Earlier this week, Argentina’s largest private bank announced that it had added a cryptocurrency trading feature to its investment platform.
This news comes less than a month after MicroStrategy CEO Michael Saylor predicted that more banks would continue to delve into the crypto space.