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Seba vs. Sygnum 

At Sygnum, co-founder Krieger noted that the «real work» as a bank begins: «We have some secondary criteria that we have to work on before we roll out any products. We are confident that we will be able to work through these criteria in a very reasonable time,» before rolling out products.

It's pointless to speculate which of the two crypto banks has better chances in the market. Both are targeting a similar range of services involving trading and management of cryptocurrencies and digital assets, custody, tokenization, liquidity management, and transaction banking.

Intermediaries for Banks

Sygnum is also applying for a Singapore license in order to manage and offer funds. Both crypto banks view themselves as intermediaries for traditional banks; Seba's partnership with Julius Baer kicks in now that the start-up has won the Swiss regulatory nod. Sygnum's positioning is more independent of the industry, but partnering with infrastructure providers.

Their approach to technology also differs: Seba is leaning on Finstar, a tech platform provided by Swiss regional lender Hypothekarbank Lenzburg. Syngum has, with partners, largely built its own platform and employs roughly one-third of staff in technology.

Head-Start by Competitors

Seba and Sygnum are operating in a market environment where some of its services are already being offered – just not by licensed banks. Bitcoin Suisse, for example, offers a stablecoin on the Swiss franc. The instrument is structured like a bond, which Bitcoin Suisse isn't allowed to issue – because it isn't a bank (it found a work-around through a subsidiary).

Zurich-based Crypto Finance offers funds and trading services. Both are racking up revenue with an existing clientele and in Bitcoin Suisse's case, profits through advice, asset management, brokerage and storage.

Reliant on Adoption

To be sure, Bitcoin Suisse and Crypto Finance have elected to tap the hot market immediately: they both began as self-regulated organizations before submitting applications to operate as a bank and a fund house, respectively. By contrast, Seba and Sygnum now have a coveted Swiss banking license, but must find their audience.

Which of the two banks can establish itself first remains to be seen, but both are heavily reliant on the reception of cryptocurrencies and digital assets in traditional finance. «Crypto Nation» Switzerland has taken the first hurdle in accepting Seba and Sygnum as banks – now the hard work begins.

Katharina Bart contributed reporting