The Swiss crypto broker lifted its bank cover yet again amid a trading boom that saw bitcoin double in value. The company said it will lift its guarantee again soon.
Zug-based Bitcoin Suisse added 20 million Swiss francs ($22.7 million) to its bank guarantee, it said in a statement on Friday. The cover now stands at 80 million francs, from 60 million francs last month.
The move follows «very high levels of client activity in the latter part of 2020 and into the new year in trading, brokerage, staking, lending and deposits,» the aspiring bank said. Bitcoin Suisse said it expects its bank guarantee to hit 100 million in coming months, from originally 45 million francs last autumn.
Trading Milestone
The dramatic jump on deposit cover follows bitcoin smashing through $40,000 for the first time ever this week, doubling its value within a month. Bitcoin Suisse said last month it had recorded trading volume doubling and new accounts surging.
«The continuing increase in the size of this bank guarantee shows a very strong increase in the demand for our services and thus an ever-growing balance sheet,» CEO Arthur Vayloyan said. The company expects a double-digit million profit for the year.
Listing Plans
The eight-year-old fintech stands out from Seba and Sygnum, which were first to win licenses, because it is hugely profitable, stocked with ex-big bankers (including co-founder Niklas Nikolajsen and Vayloyan), and has thousands of clients and processes in place.
Bitcoin Suisse raised 45 million francs early last year. It eventually wants to go public after an security token offering, or STO, this year, but has signaled that it still has some ways to go in winning a Swiss banking license.
