Business News Report
February 20, 2024

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.

Swiss Government-Owned Bank PostFinance in Partnership with Sygnum Bank Launches Crypto Services

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.

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

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.

More articles
Alisa Davidson
Alisa Davidson

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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