BancaStato Integrates Regulated Bitcoin Trading via Sygnum and Avaloq Partnership

BancaStato, the cantonal bank serving Ticino in southern Switzerland, has introduced a regulated cryptocurrency trading service that allows clients to purchase, hold, and sell bitcoin through its existing web and mobile applications, according to digital asset bank Sygnum on Thursday.

The institution integrated Sygnum’s application programming interface with its Avaloq core banking system and digital platforms, enabling seamless access to bitcoin trading alongside traditional banking services within the same user interface.

Initial offerings include market orders for bitcoin (BTC) and other cryptocurrencies, allowing trades based on either quantity or U.S. dollar value.

Bitcoin remains central to the service, reflecting a broader trend among European banks adopting crypto capabilities. Client holdings are custodied through Sygnum rather than directly on BancaStato’s balance sheet, providing regulatory oversight while maintaining separation from the bank’s financial risks.

Sygnum emphasizes that client assets are secured using institutional-grade, multi-layer custody solutions featuring hardware and software controls, governance protocols, and third-party audits. All holdings are maintained off-balance sheet, ensuring compliance with legal frameworks and protecting assets in the event of institutional insolvency.

This structure is particularly significant for bitcoin holders, as off-balance-sheet storage isolates assets from creditor claims in cases of bankruptcy.

The integration leverages Sygnum’s B2B API without requiring an additional order management system, streamlining costs and operational complexity. Fritz Jost, Sygnum’s chief B2B officer, highlighted the milestone: “BancaStato’s adoption of crypto services via Sygnum’s API within Avaloq’s SaaS ecosystem underscores the growing maturity of regulated digital asset infrastructure.”

Established in 1915, BancaStato operates on Avaloq’s cloud-based platform. Curzio De Gottardi, head of products and services and vice-chairman of BancaStato’s executive board, framed the launch as a strategic evolution: “This integration aligns with our commitment to delivering a future-ready portfolio, merging traditional and digital asset solutions.”

BancaStato joins Zuger Kantonalbank and over 25 financial institutions on Sygnum’s B2B platform, which provides digital asset access to more than a third of Switzerland’s population.

Switzerland’s Growing Crypto Banking Landscape

The development builds on momentum from Swiss institutions expanding bitcoin services. Zürcher Kantonalbank, the country’s fourth-largest bank, has enabled crypto trading and custody; St. Galler Kantonalbank extended such services to retail clients; and UBS has explored limited bitcoin trading options for wealth clients. Sygnum has further advanced crypto-linked financial products, including partnerships for BTC-backed loans and a $50 million syndicated loan with 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, issued by Liechtenstein’s Financial Market Authority. This licensing allows European banks to utilize Sygnum’s infrastructure for digital asset services, a model also pursued by providers like Bitcoin Suisse.

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