According to a Swiss central banker, Quick Take SDX, the SIX Group's digital asset exchange, will go live before the end of the year.
Further trials with CBDC, which could eventually be employed by SDX, were completed by the Swiss National Bank on its own.
By the end of the year, sources tell The Block, some of Switzerland's most important digital asset projects will be unveiled.
REPORT ON THE MANAGEMENT OF DIGITAL ASSETS AND WEALTH IN SWITZERLAND A NEW AND EXCITING INVESTMENT UNIVERSE IN THE YEAR 2021: DIGITAL ASSETS
The report demonstrates the breadth and depth of the Swiss digital asset industry, which arose out of the Crypto Valley in the first place. It is aimed at sophisticated investors who are considering whether or not to invest in cryptocurrencies and digital assets, according to the author. A conclusive overview of the Swiss digital asset ecosystem and the rapid institutionalization of this ecosystem is provided.
A total of more than 80 interviews were conducted with senior executives from banks, wealth management firms, and service providers, as well as professional individual investors and family offices to produce this groundbreaking report.
THE MOST IMPORTANT FINDINGS FROM THE REPORT
The digital asset space is currently populated by more than 14 private, retail, and online banks; it is reasonable to expect that more banks will launch digital asset offerings in 2021. Investors have made it clear that they expect their preferred bank to launch a digital asset offering.
In 2019, the first dedicated crypto banks, SEBA and Sygnum, were granted a banking license by the Swiss Financial Market Supervisory Authority (FINMA), paving the way for future banks. This was a first of its kind in the world, and it helped to put the Crypto Nation Switzerland on the map of the rapidly expanding digital asset ecosystem.
At the same time, Vontobel Bank began offering cryptocurrency-related products and services to its customers, thereby making this new asset class more accessible to a larger audience. From 2021 onwards, more private and online banks are expected to enter the digital asset space as a result of this.
Products for Investing
Switzerland is home to a number of digital asset funds and product managers with a track record that extends back over a decade. We have identified at least ten fund and product managers with a combined total asset base of more than $1 billion.
In 2021, the largest Swiss-based fund manager will have reached the critical $100 million aggregate assets under management milestone.
In 2021, 21 Shares' exchange-traded products helped the company surpass the $1 billion AuM mark for the first time.
Attractiveness on a global scale
Since the inception of the Crypto Valley in 2013, Switzerland has emerged as a major hub for global digital asset companies and investors. Bridge Tower Capital, a private equity firm based in the United States, recently opened an office in Zurich for its European operations, praising Switzerland's advantageous business environment. The fact that it is close to private banks and large family offices is a major selling point for this property.
A clear demonstration that Switzerland's digital asset ecosystem is thriving and gaining international recognition came with the acquisition of the Crypto Finance Group by Deutsche Börse, which valued the company at three-digit millions.
A type of financing used to fund new ventures is known as venture capital. A thriving venture capital industry is a critical pillar of the Swiss digital asset ecosystem. The Swiss ecosystem is gaining momentum as a result of CV VC's USD $13 million financing round.
In 2021, the digital asset service provider Metaco will raise $17 million in a Series A round of funding, which will include participation from Francisco Fernandez.
Institutional Investors are those who have a large amount of money to invest.
Among the first to recognize the potential of digital assets as an asset class were family offices and high-net-worth individuals. Family offices have risen to become a formidable force in today's society. They have the ability to deploy large pools of capital without being hampered by the stringent regulations that banks must adhere to.
Aside from financial institutions, wealth managers and multi-family offices, such as Marcuard Family Office in Geneva and Prevalor in Zurich, have begun to provide digital asset services to their respective clients.
In addition, the year 2021 marked the first time that a Swiss pension fund made a cautious foray into the world of digital assets. This will represent the next evolutionary step in the development of the digital asset ecosystem.
Taking a look ahead
In terms of an ecosystem, Switzerland has several key advantages, including a long history of successful companies, a DLT law, a savvy regulator, and clarity regarding taxation. Since Switzerland has taken the lead in the professionalization of digital assets, it has positioned itself as a global leader.
While at the same time, this professionalization draws attention to the "decentralization paradox": what is the appropriate level of regulation and governance that allows for innovation while also prohibiting abuse?
Because of the rise of digital assets and decentralized finance, the investor, who now has a much wider range of options, is the true winner of this trend.
In just a few days after China's central bank declared bitcoin and other financial blockchains to be a threat to economic stability, the Swiss financial regulator has granted approvals to a domestic cryptocurrency investment fund as well as a domestic digital asset custody service.
Swiss financial market regulator FINMA has officially approved the Crypto Market Index Fund, the first investment fund of its kind in the country, following careful consideration of its potential to "facilitate serious innovation... in a consistently technology-neutral manner."
An unrelated development is that the Swiss regulator has granted SEBA Bank an institutional-grade "custodian bank for Swiss collective investment schemes," allowing the bank's digital assets division to operate as a "custodian bank for Swiss collective investment schemes."
Guido Buehler, the chief executive of SEBA Bank, stated that the new license will allow Swiss mutual funds to provide investors with direct, liquid exposure to cryptocurrencies – something that they were previously unable to do due to the stringent requirements placed on fund managers to oversee custody solutions.