Swiss bank BancaStato has launched regulated cryptocurrency trading through digital asset banking group Sygnum, enabling clients to buy, hold, and sell four major cryptocurrencies — Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Solana (SOL) — directly within its existing web and mobile banking applications. The offering marks a notable step for the cantonal bank serving the Swiss canton of Ticino, bringing digital asset trading to a regional banking clientele under fully regulated Swiss oversight.

Sygnum Handles Execution Through Avaloq Integration

Customers can place market orders denominated in either cryptocurrency quantity or U.S. dollar value through BancaStato's digital banking channels. Sygnum then executes each transaction via its API integration with Avaloq, the core banking software platform that powers BancaStato's online services.

Because the arrangement does not require a separate order management system, BancaStato can reduce the number of technical platforms involved in transaction processing. The streamlined structure also allows the bank to adjust trading features while preserving its existing risk controls.

BancaStato is the first bank operating within Avaloq's software-as-a-service (SaaS) environment to offer API-based cryptocurrency trading through Sygnum. Since Avaloq's banking software is widely deployed across Swiss and international financial institutions, the integration template established here could serve as a reference model for other Avaloq-powered banks evaluating regulated cryptocurrency access for their own clients.

Off-Balance-Sheet Custody for Client Protection

Digital assets purchased through the service are held within Sygnum's institutional custody infrastructure, which combines hardware safeguards, software controls, governance procedures, and independent external audits.

Client holdings are maintained off BancaStato's balance sheet in compliance with applicable Swiss legal and regulatory requirements. This separation of customer assets from the bank's corporate accounts provides an additional layer of protection in the event of bankruptcy proceedings.

Sygnum's Expanding Institutional Network

Sygnum already supplies digital asset infrastructure to several established financial institutions, including PostFinance, VZ Depotbank, and Societe Generale-FORGE. The BancaStato integration adds another name to Sygnum's growing banking network across Europe and reflects a broader industry pattern in which traditional banks partner with specialized digital asset firms rather than building cryptocurrency capabilities in-house.

Sygnum's European expansion advanced further in late June when Sygnum Europe AG secured a crypto-asset service provider license in Liechtenstein. The authorization enables the firm to offer regulated services under the European Union's Markets in Crypto-Assets (MiCA) framework. The license was granted ahead of MiCA's transitional period deadline, which concluded on July 1, reinforcing Sygnum's regulated European infrastructure as BancaStato expands cryptocurrency access for its banking customers.