Jersey, Channel Islands-based digital-asset investment firm CoinShares is planning to integrate its crypto technology stack for a new Swiss digital bank following an $11.8 million strategic investment.
CoinShares bought 110,000 shares of FlowBank, a financial institution established in 2020 and licensed by the Swiss Financial Market Supervisory Authority. Total shares purchased represent 9.02% of the bank’s enlarged share capital, according to a press release on Thursday.
Beginning next year, the bank said it plans to offer customers the ability to directly buy, hold and sell cryptocurrencies, as well as other tokenized assets, directly from their FlowBank accounts.
“This further reinforces FlowBank’s commitment to go beyond the frontiers of traditional investment by providing its customers easy-to-use and trusted gateways to traditional and decentralized finance,” said FlowBank founder and CEO Charles-Henri Sabet.
CoinShares’ business of offering crypto management services and infrastructure has proved profitable for the seven-year-old company. In the first quarter of this year, the firm reported a year-on-year increase in comprehensive income of $34.9 million, representing a 338% jump in profit from the year prior. The firm reported a further fivefold increase in profits in August.
“CoinShares’ technology stack has been the backbone of our success since 2015,” said Jean-Marie Mognetti, CoinShares CEO and co-founder. “To date, this infrastructure layer has powered our internal commercial developments.”
CoinShares began trading on the Nasdaq First North Growth Market in March following a public offering that raised $17.8 million.
“FlowBank’s and our vision for the banking and investing industries are aligned and will serve as fertile soil for a fruitful partnership,” Mognetti said.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.