Swiss Bank Luzerner Kantonalbank (LUKB) has announced that it will now allow clients to use Bitcoin (BTC) and Ethereum (ETH) as collateral for loans. The bank, which launched crypto trading and custody services last May, is taking its first step into crypto-based lending.
According to Finews, the move is designed to strengthen LUKB’s digital asset strategy and keep the bank fully integrated with the growing crypto economy.
“We are responding to market developments and client needs,” said Serge Kaulitz, Head of Blockchain & Digital Assets at LUKB. “Cryptocurrencies are now a recognized, highly liquid asset class. Just like equities or funds, they can serve as collateral for Lombard loans, since they can be liquidated at any time.”
The policy update also supports LUKB’s broader goal of diversifying its portfolio as interest revenues decline. Beyond lending, the digital business aims to expand income sources and improve digital services across the bank.
Switzerland Leads in Crypto Banking
Switzerland continues to position itself as a leader in digital finance. Earlier this year, state-owned PostFinance introduced Ethereum staking for clients. More recently, in a trial led by the Swiss Bankers Association, major players like UBS, PostFinance, and Sygnum Bank executed the first-ever bank payment on a public blockchain with full legal approval.
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