Swiss Bank LUKB Accepts Bitcoin and Ethereum as Loan Collateral: Here Are the Details

Jakarta, Pintu News – The Luzerner Kantonalbank (LUKB) in Switzerland recently announced its latest policy that allows clients to use Bitcoin and Ethereum as collateral to obtain loans.

The move is part of the bank’s efforts to integrate financial services with the latest developments in digital assets. This policy is expected to expand the bank’s service portfolio and meet the evolving needs of its clients.

Integration of Digital Assets in Banking Services

Since last year, LUKB has introduced trading and depository services for several cryptocurrencies. With this latest policy, LUKB becomes one of the first banks in Switzerland to utilize cryptocurrencies in its lending business. According to Serge Kaulitz, Head of Blockchain & Digital Assets at LUKB, cryptocurrencies have now become a recognized and highly liquid asset class.

Bitcoin (BTC) and Ethereum (ETH) can now be used as collateral for Lombard loans, allowing them to be liquidated at any time. This provides more flexibility for clients who need funds quickly. Kaulitz added that the move is LUKB’s response to market developments and changing client needs.

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Portfolio Expansion and Digital Services

By adding cryptocurrencies as a collateral option, LUKB hopes to expand its service portfolio. This is especially important at a time when low interest rates are affecting banks’ interest income. Kaulitz emphasized that digital business not only enhances the service portfolio, but also helps improve digital services across the institution.

The use of cryptocurrencies in banking services is also expected to open up more options for LUKB clients. With the full integration of the digital asset value chain, the bank strives to not only fulfill, but also anticipate clients’ needs in the future.

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Switzerland Pioneers Digital Asset-Based Banking

Switzerland continues to strengthen its position as a pioneer in digital asset-based banking. Earlier in the year, state-owned bank PostFinance announced that it had included Ethereum (ETH) staking options in its banking offering. This move demonstrates Switzerland’s commitment to adopting blockchain technology and cryptocurrencies.

Recently, major Swiss banks such as UBS, PostFinance, and Sygnum Bank successfully completed the first bank payment using a public blockchain with full legal approval. This marks an important advancement in the way money moves between banks, demonstrating the huge potential of integrating blockchain technology in the traditional financial system.

Conclusion

LUKB’s new policy of allowing Bitcoin (BTC) and Ethereum (ETH) as loan collateral marks a new era in banking services. By adopting cryptocurrencies as part of its financial solutions, LUKB is not only responding to current market trends but also preparing itself for the future of digital banking. This move will hopefully bring more innovation and convenience to their clients.

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Reference

• Crypto Times. Swiss Bank LUKB to Accept BTC and ETH as Loan Collateral. Accessed on September 26, 2025
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