UBS and Credit Suisse Team Up With Soccer Players
Credit Suisse is launching a digital investing pilot project via its CSX banking app. This is despite the future of its Swiss business hanging in the balance after the UBS takeover.
On July 11, users of Credit Suisse’s CSX Swiss banking app will be able to purchase non-fungible tokens (NFT) and book them into the app.
The offer includes 756 NFTs designed by Swiss artist Daniela Filippelli and implemented on the Ethereum blockchain. These aren’t «crypto punks» but digital portraits of players from the Swiss national women’s football team. Net proceeds from the NFTs’ sales will go entirely to the players and selected youth projects in girls’ soccer, the bank announced.
Geneva Crypto Startup
That this transpired at all is a surprise. In 2019, Credit Suisse extended its sponsorship contract for the Swiss Football Association until 2024. In February it acquired a stake in the Geneva-based crypto custodian Taurus, stepping up its involvement in digital assets. Taurus now takes over custody of the NFTs acquired via CSX.
However, following its takeover by UBS, the fate of Credit Suisse Switzerland hangs in the balance. UBS will decide by the end of August what happens to the former «Swiss Bank,» with the baseline scenario of full integration.
Know-How in Demand
So why issue new NFTs when both the bank and app could be history in a few months? The bank declined to comment, but it seems clear UBS has given the marketing and digital asset teams at its new subsidiary the green light to implement the NFT pilot project. It would appear UBS is interested in benefiting from Credit Suisse’s know-how and existing partnerships in this area.
According to reports, the digital female footballers are one of the very few major projects that can still move ahead at Credit Suisse. This is all the more remarkable given that Credit Suisse employees have to obtain UBS approval for nearly all expenditures.
Busy Preparing
Speaking to finews.com, Daniel Gorrera, head of digital assets Switzerland at Credit Suisse, is optimistic about the future. «This project paves the way for the innovative use of digital assets in new types of financing and service models. In this area, Credit Suisse is well positioned to work with issuers seeking regulated partners.»
Despite a possible total integration, the bank is looking to establish itself on the crypto scene. As finews.com recently reported, preparations are underway. Virtually all wealth management banks have included digital investments in their strategy, with a majority hoping to have profitable offerings within three years. The arms race around crypto could be another argument for why UBS is giving digital football players at Credit Suisse free rein.
Will CSX Survive?
Interesting conclusions can be drawn from the NFT project over the future of CSX. If the banking app were simply shut down by the end of August, it’s unlikely a joint project with the football association will be pushed forward. Instead, it’s conceivable the app will remain up for months if not years. It’s true UBS also distributes a digital offering in Switzerland with Key 4, but Credit Suisse was quick to push its app as the first point of contact for its Swiss retail business. Through various measures, it expanded its customer base to over 300,000 clients by the end of last year.
That figure may well be relevant to UBS’s plans in its home market, given Credit Suisse’s more than a million and a half retail customers in Switzerland.
Still, technical difficulties arising from transferring clients from one application to the other need to be taken into account. Both banks in Switzerland work with homegrown IT infrastructures that evolved over decades. This is likely a form of life insurance for CSX, as long as the digital footballers don’t score an own goal.
