Arab Bank Switzerland to launch yield-bearing bitcoin product wor HNW clients
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The collaboration leverages XBTO's proprietary "Diamond Hands" strategy to provide Arab Bank Switzerland's clientele with an actively managed approach to generating yield on their Bitcoin holdings.
The partnership addresses growing client demand for yield-generating cryptocurrency products within a comprehensive regulatory framework and institutional oversight structure. This offering will be branded as an "Arab Bank Switzerland product powered by XBTO," preserving established client relationships while expanding investment capabilities through proven institutional digital asset management expertise.
"Today's announcement marks a significant milestone in our strategy to work with leading traditional financial institutions," said Karl Naim, Chief Commercial Officer and General Manager for UAE at XBTO. "Arab Bank Switzerland's six-year digital asset infrastructure development, combined with direct client demand for Bitcoin yield products, created the perfect foundation for this collaboration."
Arab Bank Switzerland, which has offered Bitcoin custody services through its partnership with Taurus since 2019, identified a specific gap in their digital asset offerings. While the bank provided custody and loan-to-value lending against Bitcoin, high-net-worth clients specifically requested active yield-generating opportunities.
"We have seen growing demand from our wealth management clients for ways to generate yield on their Bitcoin holdings within a properly managed risk framework," said Romain Braud, Head of Digital Assets at Arab Bank Switzerland. "This collaboration will position Arab Bank Switzerland as the first traditional Swiss private bank to offer an integrated, bank-branded Bitcoin yield product,while maintaining the personal relationship and fiduciary care clients expect from private banking.'
XBTO's "Diamond Hands" strategy employs an options-based methodology designed to generate yield while strategically accumulating Bitcoin during market opportunities. The approach uses existing Bitcoin holdings as collateral for options transactions, generating premiums while positioning for accumulation during market pullbacks.
"The maturation of institutional digital asset demand requires sophisticated solutions that go beyond simple exposure," said Javier Rodriguez-Alarcon, Chief Investment Officer and Head of Asset Management at XBTO. "This partnership demonstrates how established wealth managers can integrate crypto solutions while maintaining fiduciary responsibility through rigorous risk management and institutional oversight. Our approach prioritizes capital preservation and consistent yield generation over speculative trading."
The collaboration sets a precedent for traditional financial institutions seeking to offer structured, compliant cryptocurrency products within existing client relationships rather than directing clients to external providers. With regulatory frameworks maturing and institutional demand accelerating globally, this partnership is expected to serve as a model to drive similar collaborations across the wealth management sector, positioning both firms at the forefront of the digital asset integration into traditional finance.
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