Maerki Baumann — a non-public bank based mostly in Zurich, Switzerland — has announced it will take care of its clients’ cryptocurrency belongings. This would make it the second Swiss bank to make this kind of an announcement next Hypothekarbank Lenzburg (Hypi), which stated in June that it would open business enterprise accounts for cryptocurrency corporations.
The bank not too long ago posted an posting on its website entitled, “Cryptocurrencies — What Just Are They?” Prepared by the company’s deputy head of IT and digitization Milko G. Hensel, the posting provides a short description of some of the world’s best-known and most set up electronic currencies, this kind of as bitcoin and ether. It then points out that, even though the bank is ready to “accept cash created through cryptocurrencies,” it does not condone investing in cryptocurrencies provided their volatility and speculative natures.
“We would advise against any key financial investment in cryptocurrencies at current,” the posting points out. “In our see, cryptocurrencies are unsuitable for prolonged-term investors because of to the uncertainties set out earlier mentioned.”
First set up in 1932, Maerki Baumann is a spouse and children-owned bank that has generally offered asset administration and financial investment information for institutional clientele. At press time, it supervises about $649 million USD in client holdings.
The bank brazenly admits that its knowledge of cryptocurrencies is confined, though it will provide “experts” to investors wanting to take benefit of its new companies. In addition, it is also advising clientele to check with with Bitcoin Suisse — a electronic currency business — for even further info.
“Maerki Baumann carefully displays the development of these financial investment automobiles and the underlying regulation with no our determination to interact in this arena,” the bank states in a assertion.
“This worries investments in cryptocurrencies, as well as the technologies essential to trade and retail store these devices. We at the moment see cryptocurrencies as alternate financial investment automobiles, but we have confined working experience and info (prices, volatility, trading volumes, and so forth.) readily available in our dwelling.”
Switzerland is starting to be a international hub for cryptocurrency and blockchain-relevant jobs. 6 Team — the parent organization of Maerki Baumann — announced very last July that it will be launching a thoroughly integrated electronic asset infrastructure. Identified as the “Swiss Digital Trade,” the undertaking is set to open its doorways early subsequent calendar year below the direction and supervision of the country’s countrywide money regulator.
Additionally, the country’s wealthy town of Zug has been dubbed “Crypto Valley” — a take on northern California’s esteemed “Silicon Valley” — because of to the 200 to 300 individual cryptocurrency corporations it at the moment plays host to.
This posting initially appeared on Bitcoin Magazine.