Swiss Bank PostFinance Launches Crypto Service in Partnership with Sygnum Bank
In Brief
PostFinance partners with Sygnum Bank to launch crypto services that will empower 2.5 million customers to buy, store and sell crypto.
Switzerland’s fifth-largest financial services company PostFinance, owned by the Swiss government, is launching a cryptocurrency service in partnership with digital asset services provider Sygnum Bank. Starting tomorrow, the bank will offer its 2.5 million customers the ability to buy, store and sell 11 leading cryptocurrencies, including Bitcoin (BTC) and Ethereum (ETH).
The service will be accessible with a minimum investment of $50, and users can avail of the offering 24/7 through the PostFinance online account or mobile application.
Unlike other Swiss systemic banks, including UBS, Raiffeisen Group, and Zürcher Kantonalbank, PostFinance is the first systemically important bank to offer cryptocurrency services. While PostFinance doesn’t directly provide consumer loans and mortgages, functioning more as a broker, it plays a crucial role as a deposit-taking institution with CHF 95 billion deposits. Thus, to extend its services, the bank collaborates with other companies.
The PostFinance move to enter the cryptocurrency space was influenced, in part, by significant outflows from retail banks in Switzerland into the digital asset class. According to Fritz Jost, Chief B2B Officer at Sygnum Bank, PostFinance observed substantial annual outflows, amounting to hundreds of millions, towards cryptocurrency exchanges and highlighted that PostFinance viewed this expansion as an opportunity to not only generate a new revenue stream but also recognized its importance in client retention.
While PostFinance initially collaborated with Sygnum last year to introduce a retail cryptocurrency offering, the official launch of the service is taking place only now.
European Banks Enter Crypto Market
Such large-scale retail rollouts of cryptocurrency solutions are still relatively uncommon. However, Germany’s second-largest bank, DZ Bank, recently revealed its intentions to initiate a pilot for cryptocurrency trading later this year.
The institution, servicing 737 cooperative lenders, aims to list various cryptocurrencies, targeting customers who can invest “without advice.” With $627 billion in assets under management, the Frankfurt-based bank will also explore the cryptocurrency market.
PostFinance’s entry into cryptocurrency services in partnership with Sygnum Bank marks a significant shift in the Swiss financial landscape, responding to increasing demand for digital assets.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
