A 132-Year-Old Swiss Private Bank Is Planning To Offer Cryptocurrency Services To Wealthy Clients.
Julius Baer Group, one of Switzerland’s oldest banking services firms, is now offering crypto services to its wealthy clients.
According to a Bloomberg report published on May 19, the Zurich-based private bank sees the present upheaval in the crypto markets as a “potentially defining moment” for the digital asset class.
Julius Baer intends to position itself as the crossroads of “digital assets and the fiat world,” according to a statement on the bank’s new strategy. The bank has already launched experimental programs that will provide rich clients with guidance, trading, and investments in cryptoassets.
During an investor presentation, Chief Executive Officer Philipp Rickenbacher stated:
“It could well be at this very instant that we are witnessing a bubble-burst moment of the crypto-industry and we all know what happened after the dot-com bubble burst 30 years ago. It paved the way for the emergence of a new sector that indeed transformed our lives.“
Rickenbacher also mentioned the dot-com bubble’s consequences thirty years ago:
“They will transform the financial sector over the next ten years and it is important for us to gain a strong foothold in this area. That’s why it’s exactly the right moment to invest in the long-term potential of digital asset technology.“
According to the banking executive, decentralized finance has the same potential
The executive said that on the other side, it’s where conventional, expensive, and sophisticated portions of the old banking system are now simply rewritten with a few lines of code. As technology and traditional banking intersect, there is enormous opportunity to truly alter their value chains.
According to Bloomberg, Baer’s decision to offer crypto services contrasts sharply with rival Swiss-bank UBS Group AG, which has refused to provide clients with digital asset advice.
However, Baer has been positioning itself in the digital asset industry for years, purchasing a stake in SEBA Crypto AG in 2019, one of Switzerland’s two fully licensed crypto banks. Baer stated that it was “convinced” at the time of the transaction that digital assets will become a respectable and sustainable class for investors.
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