A Swiss bank has joined the league of traditional financial institutions offering digital asset services on a regulated banking platform. Bank Syz, with $30 billion in assets under management, has launched its crypto services, named Syz Crypto.
According to the bank, the aim is to offer clients digital asset solutions consolidated alongside other financial investment tools. However, Bank Syz will not allow clients to hold or trade digital assets like BTC and altcoins directly.
According to Valerie Noel, the bank’s head of trading, Syz will serve as a bridge between the traditional and decentralized finance sectors as the demand for crypto assets continues to surge among users.
Taurus, Switzerland’s leading asset custody services provider, will manage the new investment product. It is worth noting that four crypto assets will currently be on offer. They are Bitcoin, Ethereum, Polygon, and Chainlink.
Chainlink is an Oracle-based protocol with a decentralized data feed for its smart contracts, providing live price movement for digital assets.
Bank Syz’s chief investment officer, Charles-Henry Monchau, noted that the bank now offers its customers the added convenience of holding digital assets via a regulated custodian. Monchau explained that with Syz Crypto, users could have a complete view of their traditional and digital asset holdings in their bank reports.
Private banks in Switzerland began offering crypto services to clients in 2018, with the number increasing as digital asset adoption spikes among retail and institutional players.
Similarly, Brazil’s Itau is among the first traditional banks to offer crypto services to customers. In an announcement in November, Itau stated that it provides crypto custody alongside fiat.
The Rising Institutional Interest in Crypto
The bear market, the Terra LUNA crash, and the FTX collapse have little influence on the rising institutional demand for crypto assets. The digital asset industry has witnessed increased adoption by large corporations even as the market continues to see headwinds for months.
This shows that the fundamentals of the crypto market remain strong and have positioned it to survive any storm. Venture capital and crypto hedge funds are reported to be the group with the highest investment in the industry.
The main area of attraction for most individuals and groups has a high potential for price upside. Besides, the increasing use of crypto assets for transactions by other traditional trading giants has seen a surge in the mainstream adoption of cryptocurrency.
Other institutional players also refrain from crypto investments despite the positives due to high volatility and asset security concerns. With institutions and companies seeing crypto as the future of money, the industry is likely to witness further adoption.
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