Swissquote Bank Sees 44% Profit Surge Driven by Crypto Investment Services

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The digital banking landscape in Switzerland is undergoing a transformation, with crypto adoption playing a pivotal role in reshaping financial performance. Swissquote, a leading online bank based in Switzerland, reported a remarkable 44% year-on-year profit increase in the first half of 2018—largely fueled by surging demand for cryptocurrency investment services.

This growth underscores how traditional financial institutions are successfully integrating blockchain-based assets into mainstream offerings, meeting rising investor interest and setting new benchmarks for innovation in digital banking.

A Pioneering Move Into Crypto Banking

In July 2017, Swissquote made headlines by launching Bitcoin (BTC) trading accounts for its clients, positioning itself as one of the first European online banks to offer direct access to cryptocurrencies. While Falcon Private Bank technically preceded it through a partnership with regulated crypto broker Bitcoin Suisse AG, Swissquote’s independent rollout marked a significant shift toward institutional acceptance of digital assets.

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The bank's early adoption strategy paid off handsomely. According to its official H1 2018 financial report, Swissquote achieved a net profit of 25.7 million Swiss francs—surpassing analyst expectations of 23.2 million by approximately 2.5 million. This marked the second consecutive earnings period where results exceeded forecasts, reinforcing confidence in its digital-first approach.

Explosive Growth in Client Activity

The surge in profitability wasn’t just about introducing crypto trading—it reflected a fundamental shift in customer behavior. In the first half of 2018:

These metrics highlight more than just interest—they reflect active engagement and growing confidence in digital asset investing among Swissquote’s user base. The bank attributed much of this momentum to what it described as "massive interest" in Bitcoin trading, noting in January 2018 that thousands of new account applications were being submitted weekly.

Expanding the Crypto Product Suite

Recognizing the sustained demand beyond Bitcoin, Swissquote expanded its crypto offerings significantly:

This strategic diversification allowed investors to gain exposure to a basket of digital assets without managing individual wallets or private keys, lowering entry barriers and appealing to risk-averse or institutional investors.

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Regulatory Support Fuels Institutional Adoption

Switzerland's progressive regulatory environment has been instrumental in enabling banks like Swissquote to innovate safely. In June 2018, Hypothekarbank Lenzburg became the first Swiss bank to open commercial accounts for blockchain and cryptocurrency companies—following close consultation with the Swiss Financial Market Supervisory Authority (FINMA).

This decision reflects broader national efforts to maintain Switzerland’s status as a global fintech hub, particularly in regions like Zug—often dubbed “Crypto Valley.” Regulators are actively working to prevent a potential exodus of crypto firms by balancing innovation with compliance.

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These terms reflect high-volume queries from users researching secure, compliant ways to invest in digital assets through established financial institutions.

Frequently Asked Questions

Why did Swissquote’s profits rise so sharply in early 2018?

The 44% profit increase was primarily driven by heightened client activity linked to cryptocurrency trading. Surging demand for Bitcoin and other digital assets led to a spike in new account openings and transaction volumes, directly boosting revenue.

Is Swissquote the first bank in Europe to offer crypto trading?

While often labeled as one of the first, Swissquote was not the absolute pioneer—Falcon Private Bank introduced similar services slightly earlier via a partnership. However, Swissquote was among the earliest fully independent online banks to launch native crypto trading.

What cryptocurrencies does Swissquote support?

Initially offering Bitcoin, Swissquote expanded to include four additional major cryptocurrencies by late 2017. It also launched a multi-asset crypto ETP, providing diversified exposure through traditional brokerage channels.

How does the SIX Swiss Exchange listing benefit investors?

Listing crypto-based ETPs on a regulated stock exchange allows investors to access digital assets through familiar, secure, and compliant investment vehicles—without needing to use crypto exchanges or manage private keys.

Are Swiss banks safe for crypto investments?

Yes. Banks operating under FINMA regulation adhere to strict anti-money laundering (AML) and know-your-customer (KYC) standards. This ensures investor protection while enabling innovative product development within a legal framework.

Can international clients use Swissquote’s crypto services?

Swissquote serves clients globally, though availability may vary by jurisdiction due to local regulations. Prospective users should verify eligibility based on their country of residence.

As digital assets become increasingly embedded in traditional finance, institutions like Swissquote demonstrate that innovation and compliance can go hand in hand. By embracing crypto early and expanding product offerings responsibly, they’re not only capturing growth—but helping shape the future of banking.

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