Swiss Cantonal Bank BancaStato Launches Regulated Crypto Trading

Integration Brings Crypto Into Traditional Banking Channels

BancaStato has introduced regulated cryptocurrency services by connecting Sygnum’s digital asset infrastructure directly to its Avaloq-powered core banking system. Clients can now execute market orders for the four supported assets within the familiar interfaces they already use for traditional banking and investments.

The Ticino-based institution, operational since 1915, opted for a seamless approach that avoids the need for a separate trading platform or order management system. Sygnum handles execution and custody, while Avaloq facilitates the technical integration, allowing digital assets to sit alongside conventional financial products in a single customer experience.

Custody and Regulatory Safeguards

Customer crypto holdings are safeguarded in Sygnum’s institutional custody platform, which employs hardware and software security measures, governance procedures, and independent audits. The assets are held off-balance sheet in line with Swiss regulatory standards, providing separation from the bank’s own balance sheet.

This structure aims to deliver institutional-grade protection while maintaining full compliance. BancaStato described the addition as a complement to its broader investment offerings and part of its digital banking strategy.

Sygnum’s Expanding B2B Network

The partnership marks another milestone for Sygnum, whose B2B platform now serves more than 25 banks and financial institutions. Previous collaborators include PostFinance and Zuger Kantonalbank, with partner networks reportedly providing digital asset access to over one-third of Switzerland’s population.

Fritz Jost, Sygnum’s Chief B2B Officer, highlighted the significance of the implementation for banks operating on Avaloq’s Software-as-a-Service model. He noted that the direct API connection reduces complexity and supports future enhancements while preserving compliance standards.

Broader European Context

The launch follows Sygnum Europe’s receipt of a Crypto-Asset Service Provider (CASP) license under the EU’s Markets in Crypto-Assets (MiCA) regulation in late June. This authorization supports expanded service capabilities across the European Economic Area through established bank-to-bank infrastructure.

Curzio De Gottardi, Head of Products and Services at BancaStato, emphasized the strategic value of the initiative for enhancing the bank’s service portfolio.

The development reflects continued efforts by traditional financial institutions to incorporate digital assets under regulated frameworks, offering clients convenient access without requiring external platforms.