Key Takeaways:
- Swissquote planning to launch a cryptocurrency exchange.
- One of Swissquote’s goals is to create its trading platform.
Swissquote intends to launch its cryptocurrency exchange in the first half of 2022. Jan De Schepper tells finews.asia,
“We want to enable greater trade in multiple cryptocurrencies on the platform.“
He also wants to become “the foremost Swiss distributor of digital assets in the crypto world.” To do this, the broker plans to expand its cryptocurrency offering and stablecoins and staking services, which are currently in great demand.
If Swissquote’s crypto exchange goes live as expected, the number of trading platforms for digital assets in Switzerland will skyrocket.
SIX, the Swiss Stock Exchange, just established SDX, a fully approved digital exchange. SMEIX, a platform that lists tokenized small caps, was introduced just days later by Berner Kantonalbank.
Sygnum, a crypto bank, received regulatory approval to begin its new trading system, which also serves as a cryptocurrency exchange, in September 2020.
Deutsche Boerse acquired Swiss fintech Crypto Finance in June, giving the German exchange a direct entry point for digital asset investments, as well as post-trade services.
Swissquote has increased its personnel in response to the increased demand for digital tokens and coins since last spring and will continue to support future growth.
“Crypto rush nearly overwhelmed our compliance and customer service teams,” remembers De Schepper.
The recruiting binge has resulted in shorter wait times for customers who call in. We now manage to open a trading account on the same day regularly, explains De Schepper. However, he explains that account opening can take up to a week in unusual circumstances where special clarification is required.
In the first half of 2021, net income from crypto investments surged by nearly 1000 percent to 63.2 million Swiss francs. As a result, Swissquote intends to treble its pre-tax profit by the end of 2021. On the other hand, expenses will climb as Swissquote invests extensively in infrastructure.
Because many Swiss institutions have been wary of cryptocurrencies for a long time, mostly for compliance reasons, online brokers have a distinct advantage over other institutions.
However, as Swissquote CEO Marc Buerki recently stated in an interview, the tone has altered due to recent record prices: “Traditional banks have at times gone into panic mode,” striving to keep up with advances in the field.
While identifying a sales opportunity, De Schepper points out that building a fresh new crypto service from the ground up is costly and time-consuming. “In the current market phase, banks would be better suited collaborating with an established bank like Swissquote,” he says.
