Market view and Insights
LGT Bank has been offering direct investments in Bitcoin and Ether since May. The private bank has entered into a partnership with SEBA Bank, which will act as broker and custodian, to provide this service.
The demand for cryptocurrencies has risen sharply in recent years. However, without the corresponding technical understanding, investing in this asset class can be difficult for many individuals. LGT now offers an easy way to invest in two cryptocurrencies, Bitcoin and Ether (against US dollars). "We are very pleased that we can now offer our clients convenient access to these markets while upholding the highest security standards," says Roland Matt, CEO of LGT Bank, Liechtenstein. "We worked intensively on this offering. Cryptocurrencies are still in a stage of dynamic development. LGT therefore first created the corresponding, necessary processes and framework for this type of investment."
For clients, the same procedures and processes apply for direct investments in cryptocurrencies via LGT as for traditional assets: they receive the same documentation for their tax returns, and when they sell, the money can be easily accessed. In addition, LGT clients do not have to concern themselves with issues such as custody solutions for keys or passwords. In addition to the high market and liquidity risks, the custody of keys, so-called private keys, is one of the biggest security risks associated with cryptocurrencies.
For the new offering, LGT Bank has entered into a partnership with SEBA Bank AG. The Swiss financial institution has extensive experience in this segment and specializes in the custody of cryptocurrencies. "As a licensed and FINMA-regulated Swiss bank with a core competence in cryptocurrencies and digital assets, we enable banks and their clients to handle traditional and digital assets securely," says Franz Bergmüller, CEO of SEBA Bank. "We have the expertise, established processes and, above all, a custody solution that is ISAE-certified and established by independent bodies. The range of services combined with the highest security standards makes SEBA Bank's service offering unique, and we are very pleased to be able to use our expertise to support LGT in expanding its services for digital assets."
The new offering is currently available to selected client segments of LGT Bank, Liechtenstein. These clients must be domiciled in Liechtenstein or Switzerland and be classified as professional clients or be the client of an external asset manager. However, due to the demand in other areas and regions, the private bank is already working on expanding the offering and making it more widely available.