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Swiss Banks Embrace Blockchain and Cryptocurrencies: A New Study Reveals

In Switzerland, the financial sector is undergoing a significant transformation as banks increasingly recognize the potential of blockchain technology and cryptocurrencies. According to a recent study conducted by the University of St. Gallen, in collaboration with vision& and mintminds, over 80% of Swiss banks are actively expanding their blockchain offerings, with a particular focus on cryptocurrencies.

The study, which surveyed 19 banks in Switzerland between April to June 2024, revealed that more than 60% of banks are pursuing concrete plans related to cryptocurrencies. This includes the development and expansion of crypto offerings, indicating a growing interest and acceptance of cryptocurrencies within the traditional banking sector.

When it comes to planned crypto offerings, the study found that approximately 60% of banks are looking to implement or have already implemented custodial services, trading services, and exchange-traded products (ETPs) and certificates. These offerings are seen as critical components of the crypto industry and are highly prioritized by Swiss banks.

Despite the early stages of market development, cryptocurrencies are gaining traction in Switzerland, with only 0.53% of total assets under management (AuM) currently invested in the asset class. However, many Swiss banks have recently introduced their crypto offerings, suggesting significant interest in the asset class and considerable growth potential.

In addition to cryptocurrencies, Swiss banks are also showing strong interest in tokenized assets, with 47% of banks planning to develop a tokenized asset offering. This reflects a clear interest and confidence in the future of this technology, which offers benefits such as increased liquidity, transparency, and efficiency.

The study also revealed that nearly 60% of Swiss banks have already developed or are working on a blockchain strategy, with motivations ranging from innovation and growth to defensive measures against customer losses. Larger banks with more resources are more likely to integrate advanced blockchain applications into their business strategies, indicating a trend towards further adoption of blockchain technology in the financial sector.

Overall, the study highlights the growing importance of blockchain and cryptocurrencies in the Swiss banking industry, signaling a shift towards digital innovation and a new era of financial services.