Crisis-hit Falcon Private Bank is entering a tie-up with Zug-based Bitcoin Suisse. What is behind the unusual move by the Swiss private bank?

Falcon's wealthy clients can now buy, sell and invest bitcoins through their private banker, the private bank said. Clients can check their bitcoin balances online, or via traditional bank statement.

The Zurich-based firm is Switzerland's first private bank to cooperate on blockchain-based asset management – a quantum leap in the staid world of Swiss wealth management.

Falcon has gone all in, installing a bitcoin ATM (automated teller machine) in the lobby of its Zurich branch near the Paradeplatz banking district.

Falcon's Revamp

The move, vetted by Finma, underscores Falcon's new strategic positioning following the 1MDB money-laundering scandal. Falcon began cooperating with Move Digital in April in order to use the Swiss fintech's digital asset management and investment advisory platform for the bank's wealthy clientele.

Niklas Nikolajsen, founder and Chief Executive of Bitcoin Suisse, called the tie-up an «historic milestone» for the entire cryptosector. Last fall, Nikolajsen has predicted in a finews.com interview (in German) that Europe's banks would quickly begin adopting bitcoin accounts.

Another sign of cryptocurrency's advance in traditional finance is a tracker certificate launched by Vontobel recently. The canton of Zug, or «crypto valley,» recognizes bitcoin as a legitimate payment method for public services.