FINMA Approves Crypto Trading and Custody Licenses for Maerki Baumann and Incore Bank
Switzerland’s financial markets regulator, FINMA, has recently authorized two banks to provide a range of cryptocurrency-related services.
Maerki Baumann and Incore Bank announced the approvals independently last Friday.
Zurich-based private bank Maerki Baumann, which already operates a dedicated crypto desk, confirmed it has secured a FINMA license “to offer trading and custody of cryptocurrencies as well as other digital assets (tokens).”
The license enables Maerki Baumann to begin offering cryptocurrency trading and custody services to its clients starting this month.
“Maerki Baumann will initially offer trading in major cryptocurrencies, namely Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Litecoin (LTC) and Ripple (XRP),” the bank said in a statement.
In addition to opening bank accounts for companies focused on cryptocurrencies and blockchain, Maerki Baumann also advises clients on initial coin offerings (ICOs) and security token offerings (STOs).
According to data from December 2019, the bank reported assets under management of around 8.5 billion Swiss francs (approximately 8.84 billion US dollars), with roughly 80% of assets domiciled in Switzerland and 10% in Germany.
Also based in Zurich, Incore Bank is a transaction bank that provides outsourcing services to financial institutions. Its offering includes custody, payments, settlement, accounting, tax support and compliance. Maerki Baumann is among its client base.
On Friday, Incore announced that the Swiss regulator had approved its application for “trading, transfer and issuance of digital assets (tokenization).”
“This makes Incore Bank the first Swiss interbank to provide financial service providers and institutions worldwide with easy and secure access to a forward-looking new asset class,” the bank said.
Incore recently created a digital services division to expand its capacity to deliver “a full range of services from issuance and distribution through to trading and custody.”
“We ensure full segregation of clients’ crypto assets in individual wallets, with no additional capital required from the client bank,” said Daniel Blatter, Head of Digital Services at Incore.
The new division has also partnered with several firms in the crypto industry, including Crypto Finance. CEO Jan Brzezek welcomed the bank’s decision to pursue the license.
“We are convinced it is only a matter of time before Bitcoin becomes a standard part of a bank’s product portfolio. Incore Bank took an early and consistent approach to this area, and we were able to immediately deploy our brokerage and custody infrastructure,” he said.
Incore also disclosed it is working to expand brokerage, custody and transfer services for security tokens.
Translated by Carolane de Palmas