Swissquote Bank, a leading Swiss online financial trading provider, is set to launch its proprietary cryptocurrency exchange. According to Jan De Schepper, Chief Sales and Marketing Officer at Swissquote, the new platform is expected to be operational by early 2022. This initiative reflects the institution's response to growing client demand for accessible and secure digital asset investment services.
The upcoming exchange aims to merge Swissquote's established expertise in online trading with advanced digital asset security measures. It is specifically designed to offer custody services and facilitate trading for investment firms and individual investors looking to engage with the rapidly expanding cryptocurrency asset class.
De Schepper highlighted the surge in client interest, noting that the bank’s compliance and customer service teams have been significantly engaged due to the crypto rush. The move underscores Swissquote's strategy to expand its cryptocurrency offerings beyond the existing product suite.
Expanding Cryptocurrency Trading Options
Currently, Swissquote allows its clients to trade Contracts for Difference (CFDs) on 24 cryptocurrencies. The supported digital assets include:
- Bitcoin
- Ethereum
- Litecoin
- XRP
- Bitcoin Cash
- Chainlink
- Ethereum Classic
- EOS
- Stellar
- Tezos
- Augur
- 0x
- Cardano
- Uniswap
- Aave
- Cosmos
- Algorand
- Filecoin
- Maker
- Compound
- Yearn Finance
- Dogecoin
- Polkadot
- Solana
The new exchange is expected to enable direct trading and holding of a wider variety of cryptocurrencies, moving beyond CFDs to offer more comprehensive market access.
Building on Early Bitcoin and Crypto Experience
Swissquote has been an early adopter in the cryptocurrency space. The institution previously introduced an actively managed Bitcoin certificate, supported by machine learning algorithms, allowing investors to gain exposure to Bitcoin without holding the asset directly. This product is listed on SIX Swiss Exchange, Switzerland's principal stock exchange.
This approach helped overcome regulatory barriers that often prevent institutional investors from direct cryptocurrency investments. The certificate aims for capital growth through an active management strategy that shifts holdings between cash and Bitcoin based on market conditions.
The algorithm adjusts exposure by assessing predictions of Bitcoin’s future price movements. Between 60% and 100% of the certificate’s portfolio can be allocated to Bitcoin, depending on market signals.
Competing in the Swiss Digital Asset Market
With this new venture, Swissquote is positioning itself to compete with other established local players in the Swiss fintech and crypto banking sector, such as Dukascopy. These competitors also offer cryptocurrency-related services, including the ability to deposit and withdraw funds in digital coins and perform fee-free internal crypto transfers for mobile banking users.
Swissquote’s platform currently enables users to trade CFDs based not only on cryptocurrencies but also on major currency pairs, equities, and indices. These instruments are available as forward contracts with expiration dates or as spot/synthetic instruments that are subject to overnight rollover or swap interest.
The introduction of a dedicated crypto exchange represents a natural evolution for the bank as it seeks to provide a more integrated and secure trading environment.
👉 Explore advanced cryptocurrency trading strategies
Frequently Asked Questions
What is Swissquote Bank?
Swissquote Bank is a Swiss online financial and trading service provider that offers a range of products including stocks, forex, and cryptocurrencies through CFDs. It is known for its secure and regulated trading environment.
When will the new cryptocurrency exchange be launched?
The exchange is anticipated to be operational by early 2022. The launch aligns with Swissquote’s strategy to broaden its digital asset services in response to client demand.
Which cryptocurrencies can currently be traded on Swissquote?
Users can trade CFDs on 24 cryptocurrencies, including Bitcoin, Ethereum, Ripple, Cardano, Polkadot, Dogecoin, and others. The new exchange may support additional coins for direct trading.
How does Swissquote’s Bitcoin certificate work?
The certificate is an exchange-traded product that uses a machine learning algorithm to actively manage allocation between Bitcoin and cash. It allows institutional players to gain crypto exposure without direct ownership.
Is Swissquote competing with other Swiss crypto service providers?
Yes, Swissquote operates in a competitive landscape that includes companies like Dukascopy, which offer similar crypto deposit, withdrawal, and transfer services for retail and institutional clients.
Can users trade other instruments besides cryptocurrencies on Swissquote?
Yes, the platform provides access to forex, stocks, indices, and other CFDs. These can be traded as forward contracts or spot instruments, depending on the product.
Swissquote’s decision to launch a proprietary cryptocurrency exchange marks a significant milestone in the adoption of digital assets by traditional financial institutions. This move is likely to enhance the accessibility and security of crypto investments for a broader audience.