Luzerner Kantonalbank (LUKB), a leading Swiss bank, has announced that clients can now use Bitcoin (BTC) and Ethereum (ETH) as collateral for loans. This development marks another milestone in the bank’s growing digital asset strategy, following the introduction of cryptocurrency trading and custody services earlier in May.
According to a report by Finews, LUKB is the first Swiss cantonal bank to integrate cryptocurrencies into its lending operations. Serge Kaulitz, Head of Blockchain & Digital Assets at LUKB, explained that the move responds to client demand and acknowledges the liquidity of digital assets. “Just like equities or funds, cryptocurrencies can be used as collateral for a Lombard loan, since they can be liquidated at any time,” he noted.
The initiative also enables LUKB to diversify its revenue sources beyond traditional interest-based earnings—an important shift amid falling interest rates. By expanding its digital services, the bank aims to establish stronger institutional footing in the fast-growing crypto sector.
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Switzerland continues to reinforce its position as a global leader in crypto banking. Earlier this year, PostFinance introduced Ethereum staking, while a Swiss Bankers Association-led pilot saw major players, including UBS and Sygnum, successfully complete the first blockchain-based interbank payment under full legal approval.
