Sygnum Bank, which specialises in digital assets, is working with LUKB on the project. An offer for crypto assets is expected to be released next year. Thus, the LUKB, which is considered to be more conservative, has overtaken the institutions with sounding names such as UBS/Credit Suisse, Raiffeisen, or Zürcher Kantonalbank. The country’s third-largest canton bank has apparently taken the decision to eliminate rumours of “risk-rich” or “too volatile” investments.
Not only was the need to provide consumers with a new investment area the driving force behind the newest construction, but interest in swimming brought in significantly more money. The half-year profit at the Geneva Cantonal Bank was a record. According to NZZ information, LUKB has also doubled the interest rate and increased the profit in the past quarters.
Safe Storage and Trade
The LUKB has already made the decision, but until the release of the crypto offer in 2024, the specifics will be up for vote. Details will therefore be announced only when the offer is introduced on the market, said the spokesman of the bank to NZZ. But there is demand. “We already receive regular inquiries from our customers today about how to keep digital assets and cryptocurrencies safe and regulated. This is expected to develop a wider customer demand, which LUKB wants to serve as an “enterprise-minded bank”.
In addition to private customers, LUKB is also interested in professional investors such as asset managers. According to the survey by exchange operator SIX, almost 70% of professionals say they want to include digital tokens in their portfolios in the next twelve months.
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In principle, deposits at a canton bank are safe. The LUKB has a state guarantee: if the bank loses funds in a crisis, the canton of Lucerne is liable for all liabilities. The guarantee covers account assets, fixed-money bonds, and cash bonds. However, assets held in deposits or wallets, such as shares, funds, or even crypto-investments, would be excluded from the bankruptcy mass in the event of insolvency and remain the property of customers. Therefore, even a canton bank cannot completely avoid the market risks associated with cryptocurrencies. According to NZZ, internal expertise is being built in LUKB to enable safe storage and trading for customers.
