The Swiss bank BancaStato has introduced regulated cryptocurrency trading by leveraging the expertise of digital asset bank Sygnum and banking software provider Avaloq. This new service was made possible by integrating Sygnum's crypto trading and custody capabilities into BancaStato's digital banking applications, which are built on Avaloq's software.

According to a Thursday report shared with Cointelegraph, BancaStato has joined Sygnum’s business-to-business (B2B) banking platform. As the cantonal bank for Switzerland's Italian-speaking Ticino region, this move allows its clients to access crypto asset services directly. Through their existing web and mobile banking apps, customers can now buy, sell, and hold a selection of four crypto assets: Bitcoin (BTC), Ether (ETH), Litecoin (LTC), and Solana (SOL).

BancaStato is the latest of more than 25 financial institutions to utilize Sygnum’s B2B platform for offering regulated services related to digital assets.

Seamless Integration Through Core Banking Software

The technical foundation for this new offering is the integration of Sygnum's trading and custody services into BancaStato's existing Avaloq banking system. Avaloq, which is headquartered in Zurich, specializes in developing the core banking and digital banking software used by many financial institutions.

This integration establishes a direct connection between Sygnum’s application programming interface (API) and the Avaloq platform. As a result, customers can access cryptocurrency trading from within the familiar environment of their current banking app. The companies noted that this setup also circumvents the need for a separate order management system, which consequently lowers operational complexity and simplifies the process of adding new features in the future.

Fritz Jost, Sygnum’s chief B2B officer, commented on the significance of the launch. He stated that BancaStato is the first bank to use Avaloq's software-as-a-service platform to enable customers to buy, hold, and sell cryptocurrencies via their e-banking portals using Sygnum's API. Jost described the initiative as a “significant step in the maturity and scalability of regulated digital asset infrastructure.”

Other banking partners already working with Sygnum include Societe Generale-FORGE, PostFinance, and VZ Depotbank.

Sygnum Secures Key European Crypto License

This license was secured shortly before the Markets in Crypto-Assets Regulation's transitional period concluded on July 1, positioning Sygnum Europe to offer regulated crypto services compliant with MiCA.

“This means European partner banks can plug into the same proven bank-to-bank infrastructure without going through the multi-year process of building and licensing their own crypto operations,” Jost explained to Cointelegraph.

He clarified that while Sygnum furnishes the necessary licensing, custody, and trading infrastructure, the partner banks retain responsibility for their specific regulatory arrangements. “That is exactly what allows a bank to go from decision to live offering in months rather than years,” Jost added.