Coinbase, after initially buying a 9% stake in Swiss bank FlowBank in October 2021, has acquired nearly 21% more for around $26 million. This is Coinbase’s ongoing effort to reach a broader investor market for advanced crypto exposure. A spokesperson for the digital asset investment firm said it has no plans to further increase its stake.
FlowBank, licensed by the Swiss Financial Market Supervisory Authority (FINMA), was founded in 2020. It has private and institutional investors trading up to 50,000 financial products – ETFs, stocks, bonds etc. Through collaboration with Coinbase, FlowBank’s customers can invest in the digital asset firm’s crypto through derivative products.
A spokesperson for FlowBank highlighted that it offer 29 crypto pairs against Euros, US dollars, and Swiss francs. It also has crypto ETPs and will be offering direct access to cryptos in the third quarter. The Swiss bank has seen growth in the crypto industry and high demand for digital assets. As such, FlowBank sees potential in this asset class for its clients and customers.
The bank uses a tech platform developed by CoinShares, called Galata. It connects centralized finance platforms to digital asset protocols and markets, to expose clients to digital assets. FlowBank’s spokesperson said the bank will use advanced features with the likes of holding, lending, and staking. It will offer exposure to a variety of digital assets to its clients.
CoinShares has gained more than $4 billion in assets under management (AUM) at 2021-end. This is about double the amount it had a year ago. The digital asset investment firm says that they are targeting a different types of investors and trading enthusiasts, through collaboration with FlowBank. Jean-Marie Mognetti, the CEO of CoinShares, will join FlowBank’s Board of Directors.