Swiss cantonal bank BancaStato has enabled cryptocurrency trading for its clients through a new integration with digital asset bank Sygnum and banking software provider Avaloq.

Clients can now buy, hold, and sell Bitcoin, Ether, Litecoin, and Solana directly through BancaStato's existing web and mobile banking applications. Market orders can be placed by specifying either asset quantity or cash value, allowing customers to manage cryptocurrency positions alongside their traditional investment portfolios. For retail clients accustomed to separate exchange accounts and self-custody wallets, the integration offers a fully regulated alternative within a familiar banking interface.

The service links Sygnum's digital asset infrastructure to BancaStato's Avaloq core banking environment. All trades are routed through Sygnum's application programming interface (API), eliminating the need for a separate order management system.

BancaStato, formally known as Banca dello Stato del Cantone Ticino, was founded in 1915 and serves as the cantonal bank for Switzerland's Italian-speaking Ticino region. As a cantonal bank, BancaStato operates under a public law guarantee from the Canton of Ticino, which covers client deposits — a structure that distinguishes Switzerland's cantonal banks from purely private institutions and underscores the regulated framework under which the new crypto service is offered.

Sygnum Provides Execution and Custody

Sygnum delivers the execution and custody infrastructure powering the new offering. Digital assets held by BancaStato clients are stored using Sygnum's institutional-grade custody platform, which incorporates layered hardware and software controls, governance procedures, and external audits. Sygnum holds a Swiss banking license from FINMA, Switzerland's financial markets regulator, and was among the first institutions to receive a fintech license under the Swiss Banking Act.

Client assets are held off Sygnum's balance sheet under the applicable Swiss legal structure. BancaStato customers retain access to their holdings through their existing banking interface, avoiding the need to open or manage a separate account with a cryptocurrency exchange.

BancaStato is the first bank operating on Avaloq's software-as-a-service banking environment to connect directly to Sygnum's cryptocurrency platform via API. Avaloq's core banking software is used by a range of Swiss and international wealth management institutions. The integration expands Sygnum's B2B network to more than 25 banks and financial institutions, including PostFinance, Zuger Kantonalbank, Bordier & Cie, and VZ VermögensZentrum.

Swiss Banks Broaden Digital Asset Services

The launch adds another regulated banking pathway into cryptocurrency markets as Swiss financial institutions continue to expand their trading, custody, and blockchain settlement offerings. Switzerland has positioned itself as a hub for digital asset finance, with FINMA providing a regulated pathway for crypto banking through its fintech license and established banking license frameworks. The Swiss city of Zug, known as "Crypto Valley," has attracted numerous blockchain and digital asset firms.

In April, UBS, PostFinance, Sygnum, Raiffeisen, Zürcher Kantonalbank, and BCV launched a Swiss franc stablecoin sandbox to test tokenized settlement among regulated financial institutions. AMINA Bank also connected its banking platform to Ripple Payments for cross-border fiat and stablecoin transfers.

Sygnum's European subsidiary obtained a Crypto-Asset Service Provider license from Liechtenstein's Financial Market Authority on June 30. The Markets in Crypto-Assets (MiCA) authorization enables the group to offer approved crypto services across the European Economic Area through passporting arrangements, while BancaStato's new trading service operates under its Swiss banking structure. MiCA, which took full effect across the EU in December 2024, establishes harmonized rules for crypto-asset issuers and service providers in the bloc.

BancaStato launched the service with four supported assets and has not announced a timeline for adding additional cryptocurrencies.