Arab Bank Switzerland has partnered with institutional digital asset firm XBTO to launch a branded Bitcoin yield product for high-net-worth (HNW) clients. This marks the first time a traditional Swiss private bank is offering such a product under its own name.
The new offering leverages XBTO’s proprietary “Diamond Hands” strategy, an options-based framework that generates yield on Bitcoin holdings while maintaining exposure to long-term upside. It marks a shift in private banking from passive Bitcoin custody to in-house, yield-generating digital asset products within regulated, institutional-grade structures.
From Custody to Yield: Swiss Banks Embrace Digital Alpha
Arab Bank Switzerland began its foray into crypto in 2019 by integrating custody and trading services through its partnership with Taurus. Over the years, the bank added loan-to-value Bitcoin lending but identified a gap when it came to yield-generation—a service that HNW clients were increasingly seeking.
“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 partnership enables us to deliver that without compromising the trust and fiduciary care expected in private banking.”
The product will be offered as an “Arab Bank Switzerland product powered by XBTO,” allowing clients to continue their relationship with the bank while gaining access to a sophisticated yield strategy managed by an institutional crypto firm.
XBTO’s Strategy: Yield Without Sacrificing Risk Control
XBTO’s “Diamond Hands” strategy uses existing Bitcoin as collateral to generate yield through options premiums while positioning for strategic accumulation during market pullbacks. The approach is designed to minimize downside exposure and avoid speculative trading, catering to conservative wealth management mandates.
Javier Rodriguez-Alarcon, CIO of XBTO, mentioned that clients are no longer content with simple crypto exposure. They want structured, actively managed strategies that can deliver consistent returns.
“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 said.
The collaboration is also part of XBTO’s broader strategy to work with established financial institutions seeking to bridge the gap between traditional finance and digital assets. Karl Naim, CCO of XBTO, noted, “This is not just a new product—it’s a blueprint for how private banks can evolve their crypto offerings without sending clients to third-party platforms.”
The Bigger Picture: A New Era for Private Banks
The move comes as institutions worldwide begin to adopt crypto not just as an asset class, but as a strategic service line. With firms like Goldman Sachs exploring tokenization and HSBC launching custody platforms, the landscape is rapidly changing.
A report by PwC found that nearly 40% of wealth management firms plan to offer digital asset investment products by 2026. Arab Bank Switzerland’s move may accelerate that timeline, especially within the conservative Swiss banking ecosystem.
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