Crypto Finance helps Switzerland-based pension foundation develop fully regulated crypto fund
Client Description
The Switzerland-based pension foundation, finpension, is specialised in the management of and investment in 2nd and 3rd pillar pension assets (currently more than one billion CHF). With their expertise, the privately held limited liability company (AG) aims to maximise its clients’ retirement savings. finpension’s independence from all types of banks and insurance companies, as well as its fully digital offering, price leadership, and transparency towards its clients, are what enable finpension to differentiate itself from its competitors.
Challenge
With the previously available crypto offerings, finpension had been facing several challenges. The offerings were often too complex, which made it hard for the average client to understand the counterparty risk of a structured project. Moreover, many of them were only available in whole shares of around CHF 1.000, meaning that they were not accessible for clients who pay into the 3rd pillar monthly. On top of that, the vast majority of crypto offerings are not regulated by FINMA.
Approach and Solution
Crypto Finance was the solution to finpension’s problems. Upon receiving FINMA approval on September 29th, 2020, Crypto Finance was able to set up a fully regulated crypto fund for finpension, in line with Swiss law. Moreover, clarity and ease of the crypto offering were ensured, as well as fractional shares to make them more accessible for clients.
Other, less complicated, setups for launching crypto funds, such as structured products, were also considered. To successfully address finpension’s dilemmas and n order to attend to the needs of Swiss institutions and investors, Crypto Finance opted for the highest regulatory standards.
Result
The launch of the first Swiss-regulated fund does not only directly invest in crypto assets with an institutional-grade custody solution. The fund also minimises complexity and makes it more accessible for finpension’s clients – successfully transforming finpension’s offerings and tackling their challenges in a way that upholds their competitive standing.
The successful partnership was also acknowledged by Corina Friedli, pension advisor at finpension: “As a digital company, we could finally offer digital assets next to the traditional investments. This fund paved the way for finpension to become the very first 3rd pillar pension solution in Switzerland that offers crypto assets.”
