Peter Wuffli, former CEO of UBS, Switzerland’s largest bank, said that he saw tremendous potential in crypto banking. He shared his plans for the crypto space with local media portal swissinfo.ch.
Wuffli Leads Crypto Bank
What’s more important, Wuffli didn’t just share his expert opinion about the rapidly expanding crypto market but is directly involved in it. The former head of UBS is now director of Swiss-based crypto bank Sygnum. The latter obtained a banking license from the Swiss Financial Market Supervisory Authority (FINMA) along with SEBA, another crypto banking service.
Sygnum gets banking license from FINMA
Both banks want to leverage the growing interest in cryptocurrencies and digital assets operated on distributed ledger technologies (DLTs).
When asked about what has attracted his attention to the world of crypto, Wuffli said:
After the hype period, things are picking up with serious players. There are substantial opportunities in this technology and the cryptocurrency world. I was hooked because I saw how this idea was mobilising resources of finance and talent. It reminded me a bit of the experience 20 years ago when some of our best equity traders set up a hedge fund. It felt like a similar opportunity, where innovation meets talent.
Speaking about crypto banks like Sygnum, the executive stressed the nearest opportunity was the existing $220 billion market of institutions and private individuals who hold digital currencies. He revealed that thousands of customers have already contacted his crypto bank for a one-stop-shop for crypto funds custody, loans and crypto to fiat trading.
According to Wuffli, the next big thing will be tokenized assets like company shares, art, commodities or real estate. However, we’ll need a few years until all regulatory challenges are addressed.
On a side note, we reported that security token platform operator Securitize raised $14 million from giants like Santander, MUFG, and Nomura.
Blockchain Has Clear Advantages
Wuffli noted that blockchain has many advantages in finance. He said:
DLT has the potential to be a faster, more reliable and cheaper technology for basic services. We could securitise shares and build smart contracts to produce share registers that are up-to-date and correct. You can do away with spreadsheets and combining systems to pay dividends, do capital increases and trade on the secondary market.
Also, trading might take place without counter-party risk long settlement times. Blockchain is basically an accounting system that ensures all operations are correct, immutable, and traceable. More importantly, everything can be controlled via consensus, which is better than “a hierarchical chain of bureaucratic controls.”
“I find that powerful,” Wuffli concluded.
Do you think crypto banks like Sygnum will become the next big trend among banking and exchange services? Share your thoughts in the comments section!
Images via Shutterstock, insights.sygnum.com
