What Is a Virtual IBAN?
A virtual IBAN, or vIBAN, is a unique account number that receives and sends payments like any IBAN, but it is not a traditional bank account. It is a subaccount attached to a master account held by a bank or a payment institution.
alt.co Team
November 12, 2026
A virtual IBAN, or vIBAN, is a unique account number that receives and sends payments like any IBAN, but it is not a traditional bank account. It is a subaccount attached to a master account held by a bank or a payment institution.
For a cryptocurrency holder, the vIBAN answers a practical question: where the fiat proceeds of a sale land when the aim is to receive the money and send it on, not to keep it in custody. This explainer covers how a vIBAN works, how it differs from a traditional IBAN, who may issue one and what to check before using one. alt.co will offer dedicated vIBANs to its clients from December 2026; the service is not open yet and funds will be able to be held in the account for a maximum of 60 days.
| Virtual IBAN at a glance | What it means in practice |
|---|---|
| What it is | A unique IBAN assigned to one holder, linked to a master account |
| Where the money sits | In the master account, a pooled account held by the issuing institution |
| What it can do | Receive payments, and with some providers send them, like a normal account number |
| Who issues it | Banks, and payment or electronic money institutions working with a bank |
| What it does not replace | Identification, source-of-funds checks and AML controls, which apply in full |
| Typical use for crypto holders | A transit account for the fiat leg of a cash-out |
What Is a Virtual IBAN?
A virtual IBAN is an International Bank Account Number that is a subaccount within an institution or bank’s corporate account rather than a stand-alone account. It has the same format as any other IBAN and a receiver cannot tell the difference: the payment is sent by wire transfer or SEPA credit transfer in the usual way.
Why the word "virtual"
- The number is real and valid: payments sent to it arrive, and a payer's bank processes it like any other IBAN
- What is virtual is the account behind it: the funds are credited to a master account, and the institution's ledger records which holder they belong to
- One master account can carry thousands of virtual IBANs, one per holder or one per purpose
How a vIBAN Works, Step by Step
A vIBAN works through routing: the number tells the institution's system to whom an incoming payment belongs, and the ledger allocates it to that holder within the pooled account. The holder sees a balance and a history in their own name; the bank sees one master account. Virtual IBANs allow financial institutions to create subaccounts for their clients under their name in a corporate account.
Receiving a payment
- The payer sends a transfer to the holder's vIBAN, exactly as they would to any IBAN
- The payment reaches the master account held by the issuing institution
- The system reads the vIBAN, identifies the holder and credits the amount to the holder's position on the ledger
- Reconciliation is automatic: there is no need to match payment references by hand
Sending a payment
Not every vIBAN can send money. Some are collection numbers only: they receive funds, and outgoing payments leave from the master account under the institution's name. Others are full payment accounts, where the holder instructs transfers and the recipient sees the vIBAN as the origin. alt.co will implement the use of vIBANs that have both the capability of sending and receiving funds.
Virtual IBAN vs Traditional IBAN: The Key Differences
The difference between a virtual IBAN and a traditional IBAN lies behind the number, not in the number itself. A traditional IBAN is the identifier of an individual bank account; a virtual IBAN is an identifier that points to a holder within a pooled account.
| Point of comparison | Traditional IBAN | Virtual IBAN |
|---|---|---|
| What the number identifies | An individual account opened in your name at a bank | A holder or a purpose within a master account |
| Where the funds sit | In your individual account | In a pooled master account, in your name on a ledger |
| Format and acceptance | ISO 13616, accepted by payment systems | Same format, same acceptance |
| Country code | Country of the bank holding the account | Country of the institution holding the master account, which may differ from where you live |
| Services attached | Whatever the bank offers: custody, credit, cards, investment | Usually limited to receiving and sending payments |
| Typical purpose | Holding money over time | Collecting, routing and moving money |
Is a vIBAN the same as an account number?
For the payer and the receiver, yes: it is the number they send money to and receive from. For the holder, it is closer to a dedicated address on someone else's account. That distinction matters most for what happens to the funds if the issuing institution fails, a question covered further down.
Who Issues Virtual IBANs
Virtual IBANs are issued by institutions that hold a master account and are allowed to route payments on it. In practice, that means three types of provider.
- Banks, which issue vIBANs on their own accounts, often for corporate clients who want a separate number per customer or per business line
- Electronic money institutions and payment institutions, regulated in Europe under the payment services and e-money rules, which hold safeguarded client funds at a partner bank and issue vIBANs on top
- Regulated intermediaries in other activities, such as crypto service providers, which offer vIBANs to their clients through a banking partner
Within the European Union, the SEPA Regulation requires payers and payees to accept a euro account located in another member state, which is why a vIBAN with a foreign country code can still be used for a salary or a supplier payment. The European Central Bank describes the scheme and the countries it covers, including Switzerland.
What Virtual IBANs Are Used For
The common thread is control over where money arrives and who it belongs to. vIBANs were first adopted by businesses and payment companies, and they have become a standard tool for cryptocurrency platforms.
alt.co’s virtual IBANs will be limited to sending funds to accounts in the client’s name.
Crypto platforms: fiat on-ramp and off-ramp
On the fiat side of crypto, a vIBAN gives each client an account number of their own. Deposits are attributed instantly, and the proceeds of a sale can be paid out to the client's IBAN instead of a shared account with a reference. For the institution, it also keeps a clean record of who sent what, which is what a regulator expects.
Crypto holders: a transit account for a cash-out
For an individual selling a large position, the useful case is simple. The fiat proceeds land on a vIBAN in the holder's name and are sent on to their destination: a bank account held elsewhere, a property purchase, a company or an investment platform. The money is not meant to stay, so there is no need for a custody relationship with a bank. The steps of the sale itself are described in our guide on how to convert crypto to fiat.
Is a Virtual IBAN Safe? What to Check Before Using One
A virtual IBAN is as safe as the institution behind it and the way it holds the pooled funds. The number itself carries no risk; the structure does. Five questions settle most of it.
- Who holds the master account? Name the institution and its supervisor. A vIBAN issued by an unregulated entity is a red flag.
- How are client funds protected? Bank deposits may benefit from deposit protection; funds held by an e-money institution are protected by safeguarding, which keeps them separate from the institution's own money but is not deposit insurance
- Can the vIBAN send payments, or only receive them? This decides whether it can serve as a transit account
- Which currencies and limits apply? Some vIBANs are euro only, others cover several currencies
- What does the counterparty see? The holder's name, or the name of the institution: it matters for a notary, a seller or a receiving bank
These questions apply to any provider. For alt.co's own vIBAN, the master account is a corporate IBAN held in the name of Altcoinomy SA (alt.co), and each client's vIBAN is a subaccount opened in the client's own name.
Do You Still Need KYC and Source-of-Funds Checks With a vIBAN?
Yes. A virtual IBAN changes the account structure, not the obligations. The issuing institution must identify the holder and the beneficial owner, monitor payments and, for crypto proceeds, document where the funds come from. A vIBAN is not a way around a bank's questions: it moves them to the provider. When that provider is a regulated financial intermediary, it carries out the identification and source-of-funds work itself, so the institution holding the pooled account receives funds that have already been checked. That lowers its risk and makes crypto-origin funds easier to accept.
- Identification follows the same rules as for any account; the basics are covered in our article on what KYC compliance is
- Crypto proceeds still need a documented source of funds for the money that first bought the crypto and a source of wealth showing how it grew into these proceeds, as described in our guide on how to prove the source of your crypto funds
In Switzerland, these duties come from the Anti-Money Laundering Act, and the supervisory approach is set out by FINMA. Financial intermediaries that are not banks are supervised through self-regulatory organisations such as VQF.
alt.co's Dedicated vIBAN: Coming in December 2026
alt.co (Altcoinomy SA, Geneva, established in 2017, supervised by VQF) will offer its clients a dedicated vIBAN from December 2026. The service is not open yet and alt.co does not take requests for it before launch.
What has been announced
- A unique IBAN per client, working like a normal account number to receive and send payments
- A subaccount in the client's own name, attached to a corporate IBAN held by Altcoinomy SA, not a separate bank account opened for each client
- Designed as a transit account for the fiat proceeds of crypto cash-outs
- No custody relationship, and therefore no ongoing custody fee
- Currencies available: USD, EUR, CHF, GBP
What will be published at launch
The limits and the minimum transaction volume will be confirmed when the service opens. Until then, alt.co continues to serve clients through its existing route: a compliance file prepared under Swiss law, followed by an introduction to a partner private bank, described in our guide to opening a Swiss private bank account with crypto-origin wealth.
The same compliance file will work for the dedicated vIBAN once it opens in December 2026.
Frequently Asked Questions
What is a virtual IBAN?
A virtual IBAN is a unique account number assigned to one holder and linked to a master account held by a bank or a payment institution. It receives payments like any IBAN, and usually sends them, but the funds sit in a pooled account and are allocated to the holder on a company account.
Is a virtual IBAN the same as a bank account?
No. A bank account is an individual account opened in your name, with the services the bank attaches to it. A virtual IBAN is a dedicated number on a pooled account. It moves money in and out, but it usually offers no custody, credit or investment services.
Can a virtual IBAN send payments?
It depends on the provider. Some virtual IBANs only collect incoming payments, and outgoing transfers leave from the master account under the institution's name. Others are full payment accounts that both receive and send.
Can I use a virtual IBAN to cash out crypto?
Yes, if the provider accepts crypto proceeds and has documented their origin. The vIBAN receives the fiat from the sale and sends it on. alt.co's dedicated vIBAN, designed for this use, launches in December 2026; until then, cash-outs go through a Swiss private bank.
Related Topics
alt.co is a Geneva-based, Swiss-regulated financial intermediary (Altcoinomy SA) supervised by VQF and audited by BDO SA. We help crypto holders access private banking in Switzerland and Monaco.
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