Arab Bank Switzerland has partnered with digital asset manager XBTO to roll out the country’s first private banking-branded Bitcoin yield product. The offering is tailored for high-net-worth individuals seeking yield on their crypto holdings — without leaving the comfort of their long-standing wealth managers.
This strategic alliance blends XBTO’s crypto-native “Diamond Hands” strategy with Arab Bank Switzerland’s six-year experience in digital asset custody and infrastructure. The result is a yield-generating Bitcoin product that fits squarely within the Swiss private banking model of fiduciary responsibility, discretion, and regulatory compliance.
Banking Meets Bitcoin Yield
The offering — branded as an “Arab Bank Switzerland product powered by XBTO” — represents a convergence of two worlds. Arab Bank Switzerland has provided Bitcoin custody and lending solutions since 2019, largely through its partnership with Swiss infrastructure firm Taurus. But according to Romain Braud, Head of Digital Assets at Arab Bank Switzerland, a clear gap remained.
Romain said: “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.”
“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,” he added.
This client feedback led the bank to XBTO, a firm known for its institutional-grade digital asset management. The centerpiece of the partnership is XBTO’s “Diamond Hands” strategy — an options-based model that uses held Bitcoin as collateral to write options and collect premiums. The goal: consistent yield generation and opportunistic BTC accumulation during market dips.
A Model for Traditional Wealth Managers?
The collaboration is seen as a broader signal for the private banking world, which has been cautious about offering yield-based crypto products due to volatility, regulatory ambiguity, and operational complexity.
“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,” Javier added.
By keeping the product under its own brand, Arab Bank Switzerland preserves direct client relationships while leveraging XBTO’s asset management capabilities behind the scenes.
Karl Naim, Chief Commercial Officer and General Manager for UAE at XBTO, said: “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.”
The Bigger Picture
This move comes amid growing regulatory clarity in Switzerland and across Europe, as the Markets in Crypto-Assets (MiCA) regulation sets the stage for mainstream institutional adoption. Meanwhile, data from PwC and the Alternative Investment Management Association (AIMA) indicates that over 60% of hedge funds and family offices are now exploring crypto exposure, with yield strategies topping the list of interest areas.
With this new product, Arab Bank Switzerland positions itself not only as a digital asset pioneer among Swiss private banks but as a model for others navigating the digital asset frontier.
As demand grows, both firms expect their partnership to expand, potentially including multi-asset crypto yield solutions and integration with structured products — all underpinned by institutional-grade risk controls.
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