Switzerland’s Luzerner Kantonalbank (LUKB) announced that clients have the option of using cryptocurrencies bitcoin and ether as collateral for Lombard loans. This new service allows customers to obtain liquidity without having to sell their cryptocurrencies.
LUKB has been working with digital assets for around five years, during which time it has built up both internal expertise and its own infrastructure integrated into its core banking system, which is available in e-banking and mobile banking. LUKB is the first universal bank in Switzerland to offer its customers the option of collateralizing with bitcoin and ether.
Serge Kaulitz, head of Blockchain & Digital Assets at LUKB, said in a statement: “This adds an innovative financing solution to our existing offering in the areas of trading, custody, and transfer of cryptocurrencies. By accepting cryptocurrencies as collateral, LUKB is consistently expanding its position as a leading cantonal bank in the field of digital assets.”
By adding bitcoin and ether as collateral, LUKB is taking its first step in the use of cryptocurrencies in its lending business. It is thus laying the foundation for further expansion and the consistent use of the entire digital asset value chain.
Read the full release (machine translated from German)