Bank Frick, a Liechtenstein-based lending institution, has begun offering clients direct investments in the top five cryptocurrencies by current market cap: bitcoin, ethereum, ripple, bitcoin cash, and litecoin. The bank also offers its customers custodial wallet services to safely store their digital assets.
Subscribe to the Bitsonline YouTube channel for more great interviews featuring industry insiders & experts
In the upward trend of blockchain technology, a trickle of traditional financial institutions are starting to embrace the idea of distributed ledgers. Several global banks are piloting the nascent tech for mainstream banking services.
However, when it comes to directly facilitating the trading of virtual currencies, Bank Frick has positioned itself at the very edge of the global vanguard.
Crypto Banking Will Level with Traditional Banking
Bank Frick’s move to introduce cryptocurrencies into traditional banking makes it stand out from, well, virtually all other European banks. In a press release, the bank highlighted that cryptocurrency investments and cold wallet services are in high demand across the continent.
To that end, institutional players such as asset managers and trustees can now purchase digital currencies through Bank Frick using US dollars, euros and Swiss francs.
In the release, Hubert Büchel — Frick’s CEO — stated:
“We aim to place crypto-banking on at least the same level of quality as traditional banking. Our services are in demand from companies across the whole of Europe. This is because they know that we can offer them reliable support in implementing their business models with cryptocurrencies and blockchains in line with the existing regulatory framework.”
Small Banks Open-Minded, Big Banks Fearful
According to a Financial Times report, smaller European banks are more agreeable to cryptocurrencies than giant financial institutions.
For example, Swiss private banks like Vontobel and Falcon offer their customers cryptocurrency management services. Moreover, Germany’s online Fidor bank also furnishes crypto investments services.
The reason big banks fear cryptocurrencies? Perhaps they’re leaning toward being more adversarial in light of the challenges that the cryptoverse can pose toward their business models. Bigger institutions might end up being left in the dust by smaller banks who embraced change much earlier.
It’s certainly a dynamic to watch in the years ahead.
Should more banks offer cryptocurrency services to their customers? Let us know your views in the comments section below.
Images via Blick, TheBanks.eu