Swiss Online Bank Sees Surge in Profits from Crypto Investment Services

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In 2018, Swissquote, a leading digital bank based in Switzerland, reported a remarkable 44% increase in first-half profits—driven largely by growing client interest in cryptocurrency investment services. This surge highlights Switzerland’s evolving role as a global fintech and blockchain hub, particularly within its well-established financial sector.

A Pioneering Move into Cryptocurrency

Swissquote made headlines in July 2017 by launching Bitcoin (BTC) trading accounts for its clients, positioning itself as one of the first European online banks to offer direct crypto access. While Falcon Private Bank technically preceded it through a partnership with Bitcoin Suisse AG—an early regulated crypto financial services broker based in Zug—the move by Swissquote marked a turning point in mainstream banking's embrace of digital assets.

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The bank’s early adoption paid off. According to its official H1 2018 report, Swissquote achieved a net profit of 25.7 million Swiss francs—significantly surpassing analyst expectations of 23.2 million francs. The 2.5 million franc outperformance was attributed to heightened demand for crypto-related financial products and the bullish momentum in the cryptocurrency market during early 2018.

Explosive Growth in Client Activity

Client engagement surged following the launch of crypto services. In Q1 alone, Swissquote observed what Finews described as "active demand" for blockchain-enabled investment tools. The bank reported receiving thousands of new account applications each week during the peak of the crypto rally.

Key performance indicators from the first half of 2018 tell a compelling story:

These figures underscore not only increased customer acquisition but also deeper engagement and trust in Swissquote’s expanded digital asset offerings.

Expanding the Crypto Product Suite

Since launching Bitcoin trading in mid-2017, Swissquote has steadily diversified its cryptocurrency services. By December 2017, the bank added support for four additional major cryptocurrencies, responding to market demand and client feedback.

In March 2018, Swissquote introduced an exchange-traded product (ETP) that tracks a basket of major cryptocurrencies. This ETP was listed on the SIX Swiss Exchange—the country’s largest securities exchange—marking a significant milestone in institutional crypto adoption.

This strategic expansion reflects a broader trend: traditional financial institutions integrating digital assets into their core offerings, providing regulated, secure, and user-friendly access to blockchain-based investments.

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Regulatory Support Fuels Innovation

Switzerland’s progressive regulatory environment has played a crucial role in enabling this transformation. In June 2018, Hypothekarbank Lenzburg became the first Swiss bank to provide business accounts to blockchain and cryptocurrency companies—after close consultation with the Swiss Financial Market Supervisory Authority (FINMA).

This decision signaled growing regulatory confidence in the sector and reinforced Switzerland’s reputation as a safe haven for blockchain innovation. Known as "Crypto Valley," the canton of Zug continues to attract startups and established firms alike, supported by clear guidelines and forward-thinking policies.

FAQ: Understanding Swissquote’s Crypto Success

Q: What caused Swissquote’s 44% profit increase in 2018?
A: The profit surge was primarily driven by rising demand for cryptocurrency trading and investment products, along with increased client activity and asset inflows during the first half of 2018.

Q: Is Swissquote the first bank in Europe to offer crypto trading?
A: While Swissquote was among the first major online banks to launch Bitcoin trading for retail clients in 2017, Falcon Private Bank had earlier introduced similar services via a partnership with Bitcoin Suisse AG.

Q: Which cryptocurrencies does Swissquote support?
A: Initially starting with Bitcoin, Swissquote expanded to include four additional major cryptocurrencies by late 2017 and launched a multi-asset crypto ETP in 2018.

Q: How did regulation impact crypto banking in Switzerland?
A: FINMA’s collaborative approach allowed banks like Hypothekarbank Lenzburg to serve blockchain firms directly, fostering innovation while maintaining compliance and financial stability.

Q: What is the significance of crypto ETPs on the SIX Swiss Exchange?
A: Listing crypto-backed ETPs on a regulated exchange provides institutional and retail investors with secure, transparent exposure to digital assets—bridging traditional finance and decentralized technology.

Q: Can international clients use Swissquote’s crypto services?
A: Yes, Swissquote serves a global client base, offering multi-language platforms and international account access with compliance to local financial regulations where applicable.

Strengthening Future Outlook

Buoyed by strong performance, Swissquote revised its annual revenue and profit growth forecast upward—from an initial target of 10% to a projected 15% increase. This adjustment reflects management’s confidence in sustained demand for digital investment solutions and the long-term potential of blockchain-integrated financial services.

The success story of Swissquote illustrates a broader shift: traditional banks are no longer on the sidelines of the crypto revolution. Instead, they are becoming active participants—offering secure gateways for mainstream investors to enter the digital asset economy.

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Core Keywords

As institutional adoption accelerates and regulatory frameworks mature, Switzerland remains at the forefront of blending financial tradition with technological innovation. For investors and fintech observers alike, Swissquote’s journey offers valuable insights into the future of banking in a decentralized world.