Liechtenstein’s leading bank LGT Bank has partnered with the Swiss “crypto bank” SEBA bank to enable customers to invest in the cryptocurrencies Bitcoin and Ethereum. SEBA will support LGT with brokerage and custody services.
Liechtenstein aspires to be Europe’s digital frontrunner, including digital currencies. That undoubtedly has to involve the traditional banking scene, as it’s the linking pin between crypto markets and mainstream investors.
Several Liechtenstein-based banks have already ventured into crypto. Bank Frick, for example, is considered one of the European frontrunners in financial applications of blockchain technology. Now Liechtenstein’s leading private bank, LGT Bank, is making its way into the crypto ecosystem.
LGT Bank announced a cooperation with SEBA Bank to offer direct investments in digital assets for its customers. So far, the cryptocurrencies LGT will offer are bitcoin (BTC) and ether (ETH), the two biggest crypto assets by market cap.
The bank has observed a growing interest in digital assets among its customer base in the past years and thus wants to create an offer for them. Roland Matt, CEO at LGT, commented:
“We are very pleased that we can now offer our clients convenient access to these markets while upholding the highest security standards, “says Matt. “We worked intensively on this offering. Cryptocurrencies are still in a stage of dynamic development. LGT therefore first created the corresponding, necessary processes, and framework for this type of investment.”
A fruitful partnership
LGT partners with the Swiss digital asset company SEBA Bank, one of the first “crypto banks” that have received a banking license in Switzerland. CEO Franz Bergmüller said the cooperation enables both banks to leverage LGT’s range of services and SEBA’s “highest security standards” to enable customers to enter the cryptocurrency universe.
SEBA bank’s analysts are upbeat about Bitcoin. Earlier this year, they estimated bitcoin could git a new all-time-high by the end of the year, ending up somewhere between 50,000 and 75,000 US dollars. “Our internal valuation models indicate a price between $50,000 and $75,000. I’m quite confident we are going to see that level. The question is always timing,” said former CEO Guido Buehler.
Limited at first
Investors who want to have a shot at these potential gains can now do so via LGT’s new service. According to the bank, the rules of investing in crypto via the bank will be the same as for traditional assets. That means investors will receive the same documentation, including the necessary statements for their tax returns.
The bank also says customers can invest in cryptocurrencies the way they know it from other assets. Meaning they won’t have to worry about private keys or anything the like, as the bank will take care of the custody. That’s what the partnership with SEBA is for.
For now, only selected customers can take advantage of the offering, namely, professional customers or customers of an external asset manager. The offer is also only accessible for Swiss- or Liechtenstein-based clients of the bank. That said, it soon wants to make crypto available to a wider audience as well.