BancaStato, the cantonal bank of Ticino in southern Switzerland, has launched regulated cryptocurrency trading through a partnership with digital asset bank Sygnum and banking software provider Avaloq. The new service allows clients to buy, hold, and sell bitcoin directly from the bank's existing web and mobile applications, Sygnum announced on Thursday.

BancaStato integrated Sygnum's application programming interface with its Avaloq core banking system and digital channels, enabling bitcoin trading within the same interface customers already use to manage traditional accounts. At launch, clients can trade bitcoin (BTC) and other cryptocurrencies using market orders placed either by quantity or by U.S. dollar value.

Bitcoin anchors the new offering, reflecting a broader trend among European banks that have integrated cryptocurrency services. Switzerland's early regulatory clarity — anchored by FINMA guidance and the federal Blockchain Act — has positioned the country's banking sector to adopt digital assets ahead of many European peers. Cantonal banks, which operate with explicit state guarantees from their home cantons, represent a particularly conservative segment of the Swiss banking system, making their move into regulated crypto trading a signal of mainstream institutional acceptance. BancaStato clients gain exposure to bitcoin through a regulated channel rather than a standalone exchange, with holdings maintained in Sygnum's custody rather than on the bank's own balance sheet.

Sygnum stated that client assets are secured in an institutional-grade, multi-layer custody solution incorporating hardware and software controls, governance processes, and independent external audits. All client assets are held off-balance sheet in compliance with regulatory and legal requirements — a structure designed to protect holdings in the event of bank bankruptcy. This is particularly significant for bitcoin holders, as a bearer asset held off-balance sheet remains separate from creditor claims against a failed institution.

The integration operates through Sygnum's B2B API without requiring a separate order management system, an approach the firms said reduces both cost and complexity. Because Avaloq's platform serves numerous banks across Switzerland and internationally under its SaaS model, the integration establishes a template that could lower barriers for other Avaloq-based institutions considering similar launches.

"BancaStato, becoming the first bank on Avaloq's SaaS environment to enable clients to buy, hold and sell crypto via API with Sygnum directly from within its e-banking platforms, marks a significant step in the maturity and scalability of regulated digital asset infrastructure," said Fritz Jost, Sygnum's chief B2B officer.

Founded in 1915, BancaStato operates its core banking and digital channels on the Avaloq platform under a software-as-a-service model. Curzio De Gottardi, the bank's head of products and services and vice-chairman of its executive board, described the launch as a natural extension of the institution's existing offerings.

"Our seamless integration of traditional assets, investment solutions — and now digital assets — further enhances our group's future-ready offering," he said.

BancaStato joins Zuger Kantonalbank and more than 25 other banks and financial institutions on Sygnum's B2B platform. Sygnum reported that its partner banks provide over a third of the Swiss population with access to digital asset ownership.

Bitcoin in Swiss Banks

The launch continues a wave of Swiss institutions expanding into bitcoin services. Zürcher Kantonalbank, Switzerland's fourth-largest bank, has rolled out bitcoin trading and custody. St. Galler Kantonalbank opened bitcoin buying and custody to retail clients. UBS has also explored bitcoin trading for select wealth management clients.

Sygnum has additionally developed bitcoin-linked lending products, including a partnership with Relai on BTC-backed loans and a $50 million bitcoin-backed syndicated loan for Ledn.

Sygnum holds a Swiss banking license and, since June 30, 2026, a Crypto-Asset Service Provider license under the EU's Markets in Crypto-Assets Regulation (MiCA), granted by Liechtenstein's Financial Market Authority. The license enables EU banks to leverage Sygnum's infrastructure to launch their own digital asset services — a path that other providers, including Bitcoin Suisse, have pursued from the same jurisdiction.