Swiss State-Backed Bank Basler Kantonalbank Announces Bitcoin Trading and Custody Services for 2021 Launch

In a move that could reshape the relationship between traditional banking and digital assets, Basler Kantonalbank (BKB) — a Swiss government-backed cantonal bank established in 1899 — announced on August 3, 2020 that it plans to offer bitcoin and cryptocurrency trading and custody services to its clients. The announcement marks the first time a state-backed commercial bank in Switzerland has committed to providing direct cryptoasset services.

TL;DR

• Basler Kantonalbank (BKB) will launch BTC and altcoin trading and custody via subsidiary Bank Cler by 2021
• First Swiss state-backed commercial bank to offer crypto services directly
• Alain Kunz appointed as head of digital assets at Bank Cler
• Driven by massive demand from younger customers for digital asset products
• Bitcoin traded at $11,246 with a market cap exceeding $207 billion on the announcement day

A 121-Year-Old Bank Embraces Bitcoin

Basler Kantonalbank, one of 24 cantonal banks serving Switzerland’s 26 cantons, revealed that it will roll out cryptocurrency trading and custody through its subsidiary Bank Cler. While Bank Cler operates under a separate banking license, BKB holds a majority stake and uses it as its digital competence centre — making it the natural vehicle for a crypto-focused initiative.

Natalie Waltmann, a spokeswoman for Bank Cler, confirmed the plans: “We will introduce an offering for trading and custody of digital assets. Bank Cler is the digital competence centre of our company, to which parent BKB also belongs. We are also interested in offering crypto trading services.”

Young Customers Drive the Demand

The decision wasn’t made in a vacuum. BKB noted that it has been experiencing significant demand for digital asset products from its younger client demographic — a cohort that has grown up with technology and views cryptocurrency as a natural component of a diversified financial portfolio.

To lead the initiative, Bank Cler has brought on Alain Kunz as head of digital assets. Kunz, a recognized crypto expert in the Swiss financial scene, will be responsible for building out the trading and custody infrastructure and ensuring regulatory compliance across the bank’s crypto offerings.

Switzerland’s Crypto-Friendly Regulatory Environment

The announcement fits squarely within Switzerland’s broader embrace of digital assets. The country has established some of the most amenable cryptocurrency regulations in the world, creating an environment where banks and financial institutions can engage with digital assets without the regulatory uncertainty that plagues other jurisdictions.

Earlier in 2020, the Swiss town of Zermatt made headlines by becoming one of the first municipalities to accept bitcoin for tax payments. The progressive stance from both regulators and local governments has made Switzerland a hub for crypto innovation, attracting companies and talent from around the world.

Banking Access Remains a Challenge

Despite Switzerland’s welcoming regulatory framework, digital asset companies have historically struggled to access traditional banking services. Many crypto businesses find it difficult to open and maintain corporate bank accounts, creating an ironic situation where crypto-friendly regulations don’t always translate to banking-friendly practices.

BKB’s entry into the space could help change that dynamic. When a government-backed bank begins offering crypto services, it sends a powerful signal to the broader banking sector that digital assets are a legitimate and bankable asset class. The move may encourage other cantonal banks and private institutions to follow suit, potentially solving the banking access problem that has constrained the Swiss crypto ecosystem.

Bitcoin’s Bullish Momentum Continues

The announcement came during a period of renewed optimism in the bitcoin market. BTC was trading near $11,246 on August 3, having briefly touched $12,000 the previous day before a sharp correction. The price action was supported by a confluence of institutional signals: Bakkt futures had just set a new volume record with 11,500 contracts, CME open interest reached $724 million, and Fidelity Digital Assets had released a report framing bitcoin as a legitimate store of value.

Ethereum also showed strength, trading at $386.30 with a 20% weekly gain, while the total cryptocurrency market capitalization continued its recovery from the March 2020 crash.

Why This Matters

When a 121-year-old government-backed bank decides to offer bitcoin services, it represents a seismic shift in institutional attitudes toward cryptocurrency. It’s one thing for a crypto-native company to provide trading and custody — it’s another entirely when an institution with deep regulatory ties, established trust, and state backing makes the same commitment.

For blockchain technology adoption, the implications are substantial. Bank Cler’s move could serve as a template for other traditional financial institutions, demonstrating that crypto integration is not only possible within existing regulatory frameworks but increasingly demanded by customers. As more banks enter the space, the infrastructure supporting digital assets will continue to mature, bridging the gap between traditional finance and the decentralized future.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.