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Swiss banking leaders, including AMINA Bank AG and Sygnum Bank AG, have unveiled real-time Swiss banks crypto payment and settlement systems for cryptocurrencies. This initiative aims to fill the void left by the failures of the Silvergate Exchange Network (SEN) and Signature Bank’s Signet platform, exacerbating existing liquidity challenges in the market.
AMINA Bank AG and Sygnum Bank AG’s introduction of real-time Swiss Bank crypto payment solutions marks a proactive step in addressing industry setbacks. The sudden withdrawal of Silvergate Exchange Network (SEN) and Signature Bank’s Signet platform has intensified liquidity concerns, compounded by recent disruptions at FTX and Alameda Research.
Enhancing Market Liquidity
The unplanned exit of Signet and SEN fueled the liquidity crises that were already worsened by the downfall of Sam Bankman-Fried’s FTX exchange and Alameda Research. Over 12 months later, the need for more reliable sources led to the launch of AMINA Payment Network and Sygnum Connect in June and July, respectively. These Swiss Banks crypto payment channels provide 24/7 access to instant transactions involving crypto assets and fiat currencies; the most attractive part is that no transfer fees are paid between network participants.
“This improves market liquidity, as traders can respond to market movements in real-time without waiting for a settlement,” mentioned the CEO of Singapore crypto exchange AsiaNext, Kok Kee Chong. This exchange partnered with Sygnum Connect to enhance speed and reliability for crypto payments.
Significant institutional investments, such as the Swiss Bank crypto payment, have been made in the payment and crypto sector. This has fueled the development of instant payment solutions; such as Swiss Bank crypto payment solution and can be attributed to the introduction of Spot Bitcoin and Ethereum ETFs in the United States, Australia and Hong Kong. Due to this, new solutions such as the Swiss Bank crypto payment are emerging mainly outside the United States, with the Asian and European markets standing as forerunners.
Shifting to Local and Regional Partners
Marco Lim, managing partner at Hong Kong’s MaiCapital, expressed satisfaction with making strategic partnerships after the collapse of Signature Bank. Marco Lim remarked, “I now avoid using US-based banks, preferring to work with local players,”. AMINA plans to exploit this fragmentation by providing instant transactions on Swiss francs, USD and Euros. The Swiss Banks crypto payment initiative aims to include more fiat currencies subsequently.
“In time, AMINA’s network will include stablecoins and on-chain settlement,” said Myles Harrison, AMINA Bank’s Chief Product Officer (CPO). Also, BCB Group, which controls the Blinc network, has experienced more activity in its Euro and GBP settlement services. The firm included a US dollar option to Blinc, providing an essential solution in the crypto sector. “We have seen a significant increase in the use of dollar accounts, which the crypto industry has struggled to access,” noted Ashley Pope, CPO at BCB Group, according to a report by Bloomberg.
Leveraging European Regulation
Despite the development of Swiss Bank crypto payment solutions, there is a liquidity gap. Thomas Eichenberger, CPO at Sygnum Bank, noted that the market liquidity issue “has still not been closed to the extent that professional market participants would’ve wished for.” For that reason, Sygnum’s new service is mainly targeted to European and Asian clients. It aims to take advantage of the regulatory framework provided by Europe’s Markets in Crypto-Assets (MiCA) regime to boost growth in instant crypto payments.
The recent acknowledgement of Circle’s USDC as a MiCA-compliant stablecoin is a significant development. “This is a big step,” Eichenberger said. Sygnum Connect will soon enhance the instant minting and redeeming of USDC and MakerDAO’s DAI. This will facilitate the reliability of payments for businesses in crypto and fiat currencies.
Expansion of Cryptocurrency Services
PostFinance, a Swiss government bank, has advanced its cryptocurrency services. On July 3, it ushered in trading for Ripple (XRP), Solana (SOL), Cardano (ADA), and a few other options. The Swiss Banks crypto payment also offers custody services for these digital assets, further enhancing Switzerland’s place as a forerunner in crypto banking.
Conclusion
The recent collapse of SEN and Signet has led to the emergence of Swiss Banks crypto payment services that offer solutions to problems that plague the existing system. Experts believe this happened at a crucial time as investors’ confidence was declining after the collapse. It is expected that this development will lead to widespread adoption of crypto by individuals and institutions. Stay on top of your game with updates from TurkishNY Radio.
