Santander Private Banking International, a subsidiary of Banco Santander, has recently announced that it is now providing its high-net-worth clients in Switzerland with the ability to trade and hold Bitcoin (BTC) and Ether (ETH). This move is part of the bank’s plan to expand its cryptocurrency offerings in the near future, according to an internal announcement cited in a report by CoinDesk.
The service is accessible to all private banking clients who have accounts in Switzerland, regardless of their residency status. However, Santander emphasizes that the crypto trading service is only available upon client request through their relationship managers. This ensures that the bank maintains a high level of security and complies with regulatory requirements.
Santander Private Banking International intends to introduce additional digital assets in the coming months, as long as they align with the bank’s screening criteria. These assets will also be held by a regulated custodian, further enhancing the security of the clients’ investments. For now, self-custody of cryptocurrencies is not supported by Santander.
This move sets Santander apart from many other major banks, which typically offer access to digital assets on closed and permissioned blockchains. Unlike these banks, Santander provides access to digital assets on open and permissionless blockchains, such as Bitcoin and Ethereum.
John Whelan on Switzerland’s Regulatory Framework
“As the holding of crypto as an alternative asset class continues to expand, we expect that our clients prefer to rely on their existing financial institutions to be responsible for their assets,” said John Whelan, Santander’s head of crypto and digital assets, in a comment to CoinDesk.
Whelan also praised the regulatory framework for cryptocurrencies in Switzerland, which has allowed Santander to offer this custodial model to its clients. With approximately $315 billion in managed assets and deposits, Santander Private Banking International serves around 210,000 wealthy clients.
