Second Swiss Private Bank Opens Doors to Cryptocurrency Deposits
- There is demand for cryptocurrency advice amongst high net worth individuals.

Maerki Baumann, a Zurich-based private bank, has announced that it will manage the cryptocurrency assets of clients. It is the second Swiss private bank to do so.
"Generally prepared to accept funds generated through Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology. Cryptocurrencies can be thought of as systems that accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while the term crypto is used to depict cryptographic methods and encryption algorithms such as public-private key pairs, various hashing functions, and an elliptical curve. Every cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.These then must be approved by a disparate network of individual nodes (computers that maintain a copy of the ledger). For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. The World’s First CryptoBitcoin became the first blockchain-based cryptocurrency and to this day is still the most demanded cryptocurrency and the most valued. Bitcoin still contributes the majority of the overall cryptocurrency market volume, though several other cryptos have grown in popularity in recent years.Indeed, out of the wake of Bitcoin, iterations of Bitcoin became prevalent which resulted in a multitude of newly created or cloned cryptocurrencies. Contending cryptocurrencies that emerged after Bitcoin’s success is referred to as ‘altcoins’ and they refer to cryptocurrencies such as Bitcoin, Peercoin, Namecoin, Ethereum, Ripple, Stellar, and Dash. Cryptocurrencies promise a wide range of technological innovations that have yet to be structured into being. Simplified payments between two parties without the need for a middle man is one aspect while leveraging blockchain technology to minimize transaction and processing fees for banks is another. Of course, cryptocurrencies have their disadvantages too. This includes issues of tax evasion, money laundering, and other illicit online activities where anonymity is a dire ingredient in solicitous and fraudulent activities. By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology. Cryptocurrencies can be thought of as systems that accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while the term crypto is used to depict cryptographic methods and encryption algorithms such as public-private key pairs, various hashing functions, and an elliptical curve. Every cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.These then must be approved by a disparate network of individual nodes (computers that maintain a copy of the ledger). For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. The World’s First CryptoBitcoin became the first blockchain-based cryptocurrency and to this day is still the most demanded cryptocurrency and the most valued. Bitcoin still contributes the majority of the overall cryptocurrency market volume, though several other cryptos have grown in popularity in recent years.Indeed, out of the wake of Bitcoin, iterations of Bitcoin became prevalent which resulted in a multitude of newly created or cloned cryptocurrencies. Contending cryptocurrencies that emerged after Bitcoin’s success is referred to as ‘altcoins’ and they refer to cryptocurrencies such as Bitcoin, Peercoin, Namecoin, Ethereum, Ripple, Stellar, and Dash. Cryptocurrencies promise a wide range of technological innovations that have yet to be structured into being. Simplified payments between two parties without the need for a middle man is one aspect while leveraging blockchain technology to minimize transaction and processing fees for banks is another. Of course, cryptocurrencies have their disadvantages too. This includes issues of tax evasion, money laundering, and other illicit online activities where anonymity is a dire ingredient in solicitous and fraudulent activities. Read this Term"
The bank has published an article on its website entitled "Cryptocurrencies - What exactly are they?" It was written by Milko G. Hensel, Deputy Head of IT and Digitisation.
In the article, Hansel explains the basics of what cryptocurrency is and goes over a few of the most popular coins. He concludes by advising clients against any major investment in the asset class.
According to the editorial, the institution is "generally prepared to accept funds generated through cryptocurrencies," whether raised through speculation, mining or as payment for services rendered.
Hansel added: “Generally speaking, however, we would advise against any major investment in cryptocurrencies at present. In our view, cryptocurrencies are unsuitable for long-term investors due to the uncertainties set out above.”
Maerki Baumann, est. 1932, is a family-owned bank that primarily offers investment advice and asset management for institutional clients. It manages 646.3 million CHF ($649,037,080) in client assets, according to its 2017 financial report.
Interestingly, it is advising its customers to consult with Bitcoin Suisse, which is a cryptocurrency consultancy firm.
Bitcoin ATM in the lobby
Bitcoin Suisse is a business partner of Falcon Private Bank, which was the first private bank to accept cryptocurrency. It announced in August 2017 that it was prepared for Ethereum, Litecoin and Bitcoin Cash, and it even set up a Bitcoin ATM in the lobby of its headquarters.
Falcon Bank handles 4.6 billion CHF in client assets and has locations in Abu Dhabi, Dubai, London, and Luxembourg.
That same month, Falcon poached the CIO of Maerki Baumann, hiring him as chief strategist. Maerki Baumann CEO Stephan Zwahlen said at the time: "We take this opportunity to discuss the future positioning of our investment area. Based on that we will decide on an appropriate replacement."
Client demand
Private banks cater to high net worth individuals. Maerki Baumann is clearly not enthusiastic about offering this new service, so must be doing it due to client demand.
This can be seen as a continuation of the trend of big money people and institutions adopting cryptocurrency as part of their portfolios. Switzerland, in particular, is a good country to observe this.
For example, the owner of the country's main stock exchange announced in July that it is building a cryptocurrency trading desk. The Swiss Digital Exchange is planned for launch next year and will operate under the supervision of the national financial regulator.
Maerki Baumann, a Zurich-based private bank, has announced that it will manage the cryptocurrency assets of clients. It is the second Swiss private bank to do so.
"Generally prepared to accept funds generated through Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology. Cryptocurrencies can be thought of as systems that accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while the term crypto is used to depict cryptographic methods and encryption algorithms such as public-private key pairs, various hashing functions, and an elliptical curve. Every cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.These then must be approved by a disparate network of individual nodes (computers that maintain a copy of the ledger). For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. The World’s First CryptoBitcoin became the first blockchain-based cryptocurrency and to this day is still the most demanded cryptocurrency and the most valued. Bitcoin still contributes the majority of the overall cryptocurrency market volume, though several other cryptos have grown in popularity in recent years.Indeed, out of the wake of Bitcoin, iterations of Bitcoin became prevalent which resulted in a multitude of newly created or cloned cryptocurrencies. Contending cryptocurrencies that emerged after Bitcoin’s success is referred to as ‘altcoins’ and they refer to cryptocurrencies such as Bitcoin, Peercoin, Namecoin, Ethereum, Ripple, Stellar, and Dash. Cryptocurrencies promise a wide range of technological innovations that have yet to be structured into being. Simplified payments between two parties without the need for a middle man is one aspect while leveraging blockchain technology to minimize transaction and processing fees for banks is another. Of course, cryptocurrencies have their disadvantages too. This includes issues of tax evasion, money laundering, and other illicit online activities where anonymity is a dire ingredient in solicitous and fraudulent activities. By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology. Cryptocurrencies can be thought of as systems that accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while the term crypto is used to depict cryptographic methods and encryption algorithms such as public-private key pairs, various hashing functions, and an elliptical curve. Every cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.These then must be approved by a disparate network of individual nodes (computers that maintain a copy of the ledger). For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. The World’s First CryptoBitcoin became the first blockchain-based cryptocurrency and to this day is still the most demanded cryptocurrency and the most valued. Bitcoin still contributes the majority of the overall cryptocurrency market volume, though several other cryptos have grown in popularity in recent years.Indeed, out of the wake of Bitcoin, iterations of Bitcoin became prevalent which resulted in a multitude of newly created or cloned cryptocurrencies. Contending cryptocurrencies that emerged after Bitcoin’s success is referred to as ‘altcoins’ and they refer to cryptocurrencies such as Bitcoin, Peercoin, Namecoin, Ethereum, Ripple, Stellar, and Dash. Cryptocurrencies promise a wide range of technological innovations that have yet to be structured into being. Simplified payments between two parties without the need for a middle man is one aspect while leveraging blockchain technology to minimize transaction and processing fees for banks is another. Of course, cryptocurrencies have their disadvantages too. This includes issues of tax evasion, money laundering, and other illicit online activities where anonymity is a dire ingredient in solicitous and fraudulent activities. Read this Term"
The bank has published an article on its website entitled "Cryptocurrencies - What exactly are they?" It was written by Milko G. Hensel, Deputy Head of IT and Digitisation.
In the article, Hansel explains the basics of what cryptocurrency is and goes over a few of the most popular coins. He concludes by advising clients against any major investment in the asset class.
According to the editorial, the institution is "generally prepared to accept funds generated through cryptocurrencies," whether raised through speculation, mining or as payment for services rendered.
Hansel added: “Generally speaking, however, we would advise against any major investment in cryptocurrencies at present. In our view, cryptocurrencies are unsuitable for long-term investors due to the uncertainties set out above.”
Maerki Baumann, est. 1932, is a family-owned bank that primarily offers investment advice and asset management for institutional clients. It manages 646.3 million CHF ($649,037,080) in client assets, according to its 2017 financial report.
Interestingly, it is advising its customers to consult with Bitcoin Suisse, which is a cryptocurrency consultancy firm.
Bitcoin ATM in the lobby
Bitcoin Suisse is a business partner of Falcon Private Bank, which was the first private bank to accept cryptocurrency. It announced in August 2017 that it was prepared for Ethereum, Litecoin and Bitcoin Cash, and it even set up a Bitcoin ATM in the lobby of its headquarters.
Falcon Bank handles 4.6 billion CHF in client assets and has locations in Abu Dhabi, Dubai, London, and Luxembourg.
That same month, Falcon poached the CIO of Maerki Baumann, hiring him as chief strategist. Maerki Baumann CEO Stephan Zwahlen said at the time: "We take this opportunity to discuss the future positioning of our investment area. Based on that we will decide on an appropriate replacement."
Client demand
Private banks cater to high net worth individuals. Maerki Baumann is clearly not enthusiastic about offering this new service, so must be doing it due to client demand.
This can be seen as a continuation of the trend of big money people and institutions adopting cryptocurrency as part of their portfolios. Switzerland, in particular, is a good country to observe this.
For example, the owner of the country's main stock exchange announced in July that it is building a cryptocurrency trading desk. The Swiss Digital Exchange is planned for launch next year and will operate under the supervision of the national financial regulator.