Swiss Banks Adopt Crypto Payments

• Swiss banks like AMINA Bank AG and Sygnum Bank AG are taking action after the collapse of crypto-friendly US banks
• They offer real-time crypto-payment and settlement systems with no fees between participants
• MiCA plays an important role in enabling this growth and regulatory leverage

Swiss banks started to actively incorporate crypto into their systems after the FTX event and the collapse of some crypto-friendly banks.

Before its collapse in March 2023, Silvergate Exchange Network (SEN) and Signature Bank’s Signet platform processed $392.5B.

Marco Lim, managing partner at Hong Kong’s MaiCapital, expressed satisfaction at finding new partners after Signature Bank’s collapse. “I now avoid using US-based banks, preferring to work with local players,” he said.

Now, AMINA Bank AG and Sygnum Bank AG plan to leverage this fragmentation and have introduced a real-time payment and settlement system, trying to influence the liquidity crisis this has formed.

Specifically, AMINA Payment Network and Sygnum Connect were launched in July and June, respectively. They provide a 24/7 platform for instant transactions involving fiat currencies and crypto assets, with no transfer fees between network participants.

It is also very important that all of this happens with the direct involvement of MiCA. For example, Sygnum Bank is leveraging the European Union’s MiCA regulation to enhance growth in instant crypto payments, aiming to capitalize on the regulatory framework provided by the MiCA regime.

What Is the Trend Behind the Adoption of Crypto Payments in Switzerland?

In general, we are seeing rapid regulatory advancements in Europe regarding crypto. One of these major developments was the recent settlement of the USDC by Circle, which you can read about in our other article.

And we see many factors that may be pushing European governments towards such initiatives, namely the collapse of some crypto-friendly banks, the dependence on the dollar and its fluctuations, the dynamic and ambiguous course of the United States regarding support for the European Union.

With respect to Switzerland, it is particularly interesting that the basis of its reputation is the reliability of its banks and the strictness of its laws, which are even stricter than in Europe. If Swiss banks do not see risks to their reputation and are willing to adopt crypto, this may tell us how seriously we should take crypto assets and what place they are likely to occupy in our financial system.