LGT Bank of Liechtenstein, part of the world’s largest family-owned banking conglomerate, is now offering cryptocurrency custody and brokerage services.
As part of the services available to private clients, LGT Bank is offering direct investment in bitcoin and ethereum against the US dollar. The financial institution, owned by the Principality of Liechtenstein, has $285 billion (CHF 280 billion) in assets under management.
Bank of Liechtenstein highlights growing crypto demand
The announcement, posted on the banking group’s website, highlighted the growing demand for cryptocurrencies among its customers, but also underscored the difficulty of developing the necessary technical understanding of the nascent asset class.
Considering these difficulties, such as liquidity challenges or private key custody, the bank is approaching its services.
“We are extremely pleased that we can now provide our customers with convenient access to these markets while maintaining the highest security standards,” said Roland Matt, CEO of LGT Bank.
“Cryptocurrencies are still in a phase of dynamic development,” he said. “LGT therefore first put in place the relevant, necessary procedures and framework for this type of investment.”
The announcement also outlines how customers will go through familiar processes and procedures when dealing with crypto similar to traditional assets. These included uniform tax return documents and ease of access to funds after the property was sold.
In offering these services, the bank has partnered with SEBA Bank, which will act as a broker and custodian for its clients’ cryptocurrencies.
According to Mathias Schutz, SEBA’s Head of Client and Technical Solutions, “LGT is launching from its booking center in Liechtenstein to customers located in Liechtenstein and Switzerland.” He added that the bank is planning “further expansion in the next few months”.
Crypto lacks reserve currency standards
Last week, Swiss National Bank President Thomas Jordan explained at the annual general meeting how easy it would be for a central bank to own crypto assets.
“Buying bitcoin is not a problem for us, we can buy it directly or investment products based on bitcoin,” Jordan said.
Yet, despite the ease with which monetary authorities can put bitcoin on its balance sheet, Jordan acknowledged that it still lacks the standards required for a reserve currency.
Meanwhile, as part of Western sanctions on Russia in response to its invasion of Ukraine, Switzerland said in March that it would freeze all crypto assets owned by sanctioned Russians.
A senior official in the country’s finance ministry said the move was necessary to “protect the integrity” of its developing cryptocurrency industry, as it purports itself to become one of the world’s largest centers for blockchain-based financial assets. gives place.