Swiss-based banking giant Creddit Suisse announced the amount of crypto money it holds. Accordingly, the bank holds tens of millions of dollars of crypto assets for its customers in Q3 of 2022.
Creddit Suisse holds $32 million in cryptocurrencies
Credit Suisse has tens of millions of dollars in “digital assets” for its customers at the end of the second quarter, according to regulatory filings. Thus, it shows how traditional financial institutions are stepping into the cryptocurrency custodian space. The Swiss banking giant recently reported that it is holding $32 million in crypto assets. However, it did not disclose whether it held these assets in the previous two quarters.
In addition, the bank’s statement did not contain any information on what “digital assets” were. These assets appear to include tokenized assets rather than market-leading cryptos like Bitcoin and Ethereum. Credit Suisse complies with the accounting guidance of the US Securities and Exchange Commission (SEC). It also says it holds tokenized securities for its clients in accordance with this guideline.
The bank declined to disclose which assets it holds
The SEC guideline, titled “SAB 121,” urges companies that hold their customers’ “crypto assets” to transparency. Accordingly, it highlights the need to report cryptocurrencies as both assets and liabilities on the balance sheet. SEC regulators released the guidance in March in an effort to address the “significant risks” of crypto oversight. Credit Suisse stated in its second quarter financial report that it is now following this accounting guideline.
However, he didn’t quite do the “disclosure as entity” part in the guide. That is, we do not know what assets the bank holds. This does not comply with the “clear disclosure of nature” rule in the SEC guideline. On this issue, Creddit Suisse avoided answering journalists’ questions. It is also noteworthy that the bank kept crypto money in the third quarter.
Crypto companies that comply with the SEC’s “SAB 121” guideline
Major banks, including Citigroup, BNY Mellon, Goldman Sachs and State Street, all followed SAB 121 in their latest quarterly financial reports. Thus, perhaps they laid the foundation for accounting disclosures for their own crypto custody plans. However, none of them announced that they held any crypto assets to account for in the second quarter.
As we reported as Kriptokoin.com, some crypto companies such as Coinbase have also started reporting crypto risks in accordance with the new SEC rule. Coinbase has reported that its customers are at risk of losing their assets if it goes bankrupt. However, CEO Brian Armstrong later stated that this is just a legal notice under “SAB 121”. While we don’t know what assets Creddit Suisse holds, we can say that SEC guidance will make the market more transparent.
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