Tag : Cryptoverse

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Swiss Online Bank Reaching Soaring Heights Since Crypto Investment Offer

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Swissquote is one of the major online banking service providers in the country. It has seen a massive surge in profits, going north of 40 percent. This uplift is being attributed to the cryptocurrency boom that the world is still reeling from.

The bank was considered to be the first major European online bank to launch Bitcoin trading accounts for their customers. There have been other Swiss banks trying to claim their so-called firsts in the cryptocurrency industry as well now.

The sudden growth for Swissquote in the first quarter of the year began with the rising demand for cryptocurrency-based products.

The online bank’s Swiss Quote Group reported that they made a massive profit. At around $23 million CHF within the first half of the year, this is over 40 percent of the profits that they made by this time last year. The number of accounts at the Swissquote online bank has also seen a significant rise. It is not just the number of accounts. The amount of activity with the existing and the new accounts has also seen a sharp rise. All of this has led to increasing profits for the online banking service provider based in Switzerland.

This 44 percent increase also marks the second time that the online banking service provider has seen its profits exceed all expectations. There are several thousand new applicants looking to make an account at the bank ever since it has offered Bitcoin trading services.

The overall rise in the quantity of client assets during this time has increased by 20 percent of its original value and it’s only the middle of the year! The flagship offering of Bitcoin has diversified the cryptocurrency investment products portfolio at the Swiss online banking service.

Cryptocurrencies are making a big impact on the global economic affairs now. There are more Swiss banks making headway into the cryptoverse.

Hypothekarbank Lenzburg became the first Swiss bank to provide business accounts to blockchain-based companies in June.

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Lack of Proper Cryptocurrency Custody Barrier to Institutional Investment

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One of the biggest challenges that is facing the main stream adoption of the cryptocurrency in the larger economic picture is the lack of custody services being provided by major players in the financial industry. The absence of it is hindering a lot of major institutional investors to partake in the investment of cryptocurrencies which is leading to slower adoption in a significant context.
The virtual currency sector is still in its nascent stages but it has been almost 10 years since it came forth. 2017 saw the cryptocurrency universe grow in massive proportions but the widespread institutional investment adoption still remains one aspect still being left for want. In light of the current situation, investment in cryptocurrency is only a risky option for chief investment officers to consider. It would take a massive leap of faith on behalf of chief investment officers at the major institutional investment industry to place their trust in such a risky prospect. If we know one thing for a fact, they do not operate on a whim and are the most cautious when it comes to investment opportunities.
Cryptoverse Still Too Infantile for Institutional Custodians
There is a lot of debate around the matter as many analysts argue that the world of cryptocurrencies is still not developed enough for the consideration of institutional custodians to step into the frame. The primary focus for the custodians is more towards the prospects of blockchain and distributed ledger technology which came about with the advent of cryptocurrencies – not cryptocurrencies themselves.
Instead of taking time out for cryptocurrency custody, institutional custodians are more inclined to partner with the fintech industry to utilize blockchain technology and improve on the likes of cross border payments, settlements and clearing. They want to leverage the power of blockchain technology and as things stand, they’re still at a preliminary stage of exploring the waters.
Cryptocurrency Custodianship is a Conundrum
There are those attributing a lack of institutional custodianship in the cryptoverse to a bit of a conundrum in the sector. Investors want the infrastructure from the custodians to be put into place while the custodians want investors on board before they work on the infrastructure.
That being said, we might very well be seeing institutional custodianship in the cryptocurrency world in the near future. The increasing adoption of cryptocurrencies on a global scale and the increasing security risks might just convince the lot of them to work out their differences and take a properly working initiative to resolve the custody problem in the cryptocurrency world.