20 May 2018

Crypto Finance applies for Swiss banking licence

19 December 2017  |  16859 views  |  0 Bitcoin

Virtual currency investment firm Crypto Finance has closed a EUR13 million capital raise to fund an application for a Swiss banking licence.

Established in June this year, the company provides asset management, brokerage and storage facilities to the crypto-investing community.

It is one of a wave of startups looking to create an alternative financial system in Switzerland as the country's traditional banks continue to shy away from the booming cryptocurrency market.

Other institutions planning to lodge applications with Swiss licencing authority Finma include Lykke and MtPelerin, while yet others are exploring the banking-as-a-service model as a means of taking deposits and offering financial services.

The new breed of startups are clustered around Switzerland's own Crypto Valley, located in Zug, a Government-backed zone intended to position he country as a global hub for blockchain and cryptographic development with the support of multiple blue chip partners, including UBS, Thomson Thomson Reuters, PwC, Consensys and Luxoft.

The EUR13 million round in Crypto Finance was raised from a group of Swiss angel investors, including former banker Rainer-Marc Frey and asset management whiz Dr. Philipp Cottier, who joins the Crypto Finance board. The company says the additional capital will be used to fund the arduous process of applying for a Swiss banking licence.

This will take some time, but “it is of critical importance to prepare this step early on, to be strategically positioned to offer a full range of financial services to crypto investors”, states Jan Brzezek, CEO of Crypto Finance AG.

Crypto Finance currently employs 26 staff and runs a "cash-flow positive" trading desk says Brzezek. Its first two funds will launch early January offshore, and in 1Q/2018, pending Finma approval, in Switzerland. The institutional crypto storage facility will be opened in April 2018.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Saxo Bank's 'Outrageous Prediction': Bitcoin to peak at $60k next year before spectacular crash

Saxo Bank's 'Outrageous Prediction': Bitcoin to peak at $60k next year before spectacular crash

07 December 2017  |  20497 views  |  2 comments | 7 tweets | 7 linkedin
Coinbase targets institutional investors with digital currency storage service

Coinbase targets institutional investors with digital currency storage service

17 November 2017  |  6492 views  |  0 comments | 3 tweets | 6 linkedin
Cryptocurrency transactions to exceed $1trn by year-end: report

Cryptocurrency transactions to exceed $1trn by year-end: report

05 September 2017  |  24312 views  |  0 comments | 24 tweets | 21 linkedin
Switzerland's Crypto Valley Association draws blue chip support

Switzerland's Crypto Valley Association draws blue chip support

01 March 2017  |  13337 views  |  0 comments | 7 tweets | 5 linkedin
Switzerland looks to ease rules for fintech firms

Switzerland looks to ease rules for fintech firms

02 November 2016  |  9346 views  |  0 comments | 21 tweets | 13 linkedin
Swiss railway operator to sell Bitcoin at ticket machines

Swiss railway operator to sell Bitcoin at ticket machines

31 October 2016  |  7054 views  |  1 comments | 7 tweets | 13 linkedin
Switzerland needs to become more fintech friendly or risk irrelevance

Switzerland needs to become more fintech friendly or risk irrelevance

08 February 2016  |  9213 views  |  0 comments | 23 tweets | 8 linkedin
Swiss to vote on proposals to treat bitcoin as foreign currency

Swiss to vote on proposals to treat bitcoin as foreign currency

10 December 2013  |  39315 views  |  0 comments | 31 tweets | 13 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit www.vasco.com/news/mobile-firstvisit www.ebaday.com

Top topics

Most viewed Most shared
Ripple moves to build ecosystem around XRPRipple moves to build ecosystem around XRP
9525 views comments | 5 tweets | 7 linkedin
HSBC claims blockchain breakthrough for trade financeHSBC claims blockchain breakthrough for tr...
9202 views comments | 14 tweets | 16 linkedin
IT implications and the need to pivotIT implications and the need to pivot
9192 views comments | 2 linkedin
Irish bank caught in social media spying stormIrish bank caught in social media spying s...
8010 views comments | 25 tweets | 16 linkedin
Former JPMorgan blockchain leads unveil new startupFormer JPMorgan blockchain leads unveil ne...
7147 views comments | 2 tweets | 2 linkedin

Featured job

(GBP Equivalent) Six-Figure Base + OTE + Benefits
New York City, NY - USA

Find your next job