Crypto News

Swiss Government-Owned PostFinance to Offer Bitcoin & Ether

Published by
Nonhlanhla P Dube
  • PostFinance’s partnership with Sygnum Bank aims to bridge the gap between traditional finance and digital assets, reflecting a global trend of banks offering cryptocurrency services.
  • The move into cryptocurrency by PostFinance comes in response to changing customer needs, and the partnership with Sygnum Bank offers access to the bank’s expertise in digital assets and reputation as a leading provider of digital asset services.
  • The move into cryptocurrency offers PostFinance a new revenue stream, and an opportunity for client retention, and could give the company a competitive edge in the Swiss financial services industry, particularly with younger and more tech-savvy customers. The bank has a roadmap for the rollout of cryptocurrency services, which could eventually include staking and other services.

Switzerland’s fifth-largest financial services firm, PostFinance, is set to offer its 2.5 million customers access to cryptocurrency through a partnership with regulated digital asset services provider, Sygnum Bank. PostFinance, which is fully owned by the Swiss government, will enable users to buy, store, and sell leading cryptocurrencies such as Bitcoin and Ether. More crypto-tokens are expected to be added soon.

According to Fritz Jost, Chief B2B Officer at Sygnum Bank, the decision by PostFinance to offer crypto was partly driven by outflows from retail banks in Switzerland into the digital asset class, and this move will not only add a new revenue stream but also improve client retention. Jost also confirmed that PostFinance has a roadmap for the future, which will include a diverse range of crypto assets to be made available. The move by PostFinance is seen as Switzerland’s continued support for cryptocurrencies, in stark contrast to the US’s approach, where crypto appears to be stamped out.

In addition, PostFinance’s partnership with Sygnum Bank offers an opportunity to bridge the gap between traditional finance and the world of digital assets. The move towards cryptocurrency reflects a global trend, as many banks and financial institutions around the world have started to offer cryptocurrency services to their customers. The decision by PostFinance to move into cryptocurrency comes at a time when Switzerland’s financial services industry is facing increasing competition from the emerging fintech sector. PostFinance’s move could give it a competitive edge, particularly with younger and more tech-savvy customers.

According to PostFinance Chief Investment Officer Philipp Merkt, the move into cryptocurrency is a response to changing customer needs. “Digital assets have become an integral part of the financial world, and our customers want access to this market at PostFinance, their trusted principal bank,” said Merkt in a statement. “A reputable and established partner like Sygnum Bank with an excellent service offering is more important than ever.”

The partnership with Sygnum Bank also allows PostFinance to benefit from the bank’s expertise in digital assets. Sygnum Bank was one of the first banks to receive a banking license from Swiss regulators specifically for digital assets, and has since built up a reputation as a leading provider of digital asset services. The bank offers a range of services to its clients, including custody, trading, lending, and tokenization of digital assets.

The move into cryptocurrency also offers an opportunity for PostFinance to add a new revenue stream. According to Fritz Jost, Chief B2B Officer at Sygnum Bank, PostFinance became aware of a considerable number of outflows from retail banks in Switzerland into the digital asset class. “So they saw that this is not only an opportunity to add a new revenue stream, but also realized that this has a lot to do with client retention,” said Jost in an interview with CoinDesk.

While PostFinance has not yet decided which cryptocurrencies it will offer to its customers beyond Bitcoin and ether, Jost suggests that a diverse range of digital assets will be made available. He also notes that the bank has a roadmap for the rollout of cryptocurrency services, which will start with buy, hold, and sell services, and could eventually include staking and other services.

Overall, PostFinance’s move into cryptocurrency is a significant development for the Swiss financial services industry and reflects a broader trend toward the integration of digital assets into traditional finance. As cryptocurrency adoption continues to grow, more banks and financial institutions are likely to follow suit, offering their customers access to the world of digital assets.

Nonhlanhla P Dube

Nonhlanhla P Dube is a senior news reporter at Rateweb. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her directly by email at nonhlanhla@rateweb.co.za

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Published by
Nonhlanhla P Dube
Tags: PostFinance

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