LUKB Makes History: First Cantonal Bank to Offer Lombard Credits on Bitcoin and Ethereum

Swiss banking just got a crypto injection—and traditional finance is feeling the tremors.

Breaking the Mold

Luzerner Kantonalbank shatters conservative banking traditions by accepting Bitcoin and Ethereum as collateral for Lombard loans. No more waiting for legacy systems to catch up—they're building the bridge themselves.

Collateral Revolution

Digital assets now carry equal weight to traditional securities in their lending framework. The move effectively treats cryptocurrencies as legitimate financial instruments rather than speculative toys.

Institutional Validation

This isn't some fintech startup's passion project—it's a fully regulated cantonal bank putting its reputation behind crypto lending. The due diligence alone would make most traditional bankers break out in cold sweats.

Finally, a bank that understands digital assets aren't disappearing into the ether—unlike those 2008 mortgage-backed securities everyone pretended to understand.

Lombard credit for Bitcoin and Ethereum

Cryptocurrencies have developed into a recognized and highly liquid asset class. Similar to stocks or funds, they can serve as collateral for a Lombard credit, since they can be sold at any time. Due to their volatility, LUKB deliberately applies conservative lending values to mitigate the risk of short-term price fluctuations, according to the statement. Otherwise, the pledging of cryptocurrencies works essentially the same as with traditional securities but is tailored in detail to the specific characteristics of digital assets – especially for crypto-savvy clients who prefer not to sell large holdings.

"This expands our existing range of services in crypto trading, custody, and transfers with an innovative financing solution. By accepting cryptocurrencies as collateral, LUKB is consistently strengthening its position as the leading cantonal bank in the field of digital assets." - Serge Kaulitz, Head of Blockchain & Digital Assets at LUKB

Crypto services are being expanded

At the beginning of 2024, LUKB launched its own platform for the trading and custody of Bitcoin (BTC), Ethereum (ETH), and USD Coin (USDC). In June 2024, it introduced a crypto savings plan, and by the end of the year, the offering was expanded with a fully integrated solution for the deposit and withdrawal of all cryptocurrencies as well as services for institutional clients.

Today, seven cryptocurrencies are tradable at LUKB, which – like traditional assets – are held in custody at the bank. Custody is provided within a highly secure infrastructure certified according to international ISAE-3000 and ISAE-3402 Type 2 standards, ensuring clients the highest level of security.