- PostFinance partnered with Sygnum Bank to facilitate crypto services for Bitcoin and Ethereum.
- It has over 2.5 million customers and is the fifth-largest bank in Switzerland.
Swiss Bank PostFinance partnered with the Sygnum banking platform to provide Bitcoin and Ethereum services for their clients. Switzerland owns PostFinance, and Sygnum’s B2B banking platform will provide the services. This partnership with traditional banks and a digital asset bank would be helpful.
Swiss Bank Offering Digital Assets Services
This partnership would facilitate the customers with buying, selling and storing cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). PostFinance is Switzerland’s fifth-largest financial institution, with over 2.5 million customers.
Sygnum’s Chief B2B Officer– Fritz Jost, while speaking to the media, said that the partnership has the potential to change the financial landscape of Switzerland. This partnership has strategic importance and represents an important chapter in asset class adoption and crypto regulation.
Swiss Banking
Switzerland is known to be a giant in the banking realm, and its investment ecosystem offers crucial strategic advantages. This involves regulatory clarity for cryptocurrencies and much-required off-balance sheet classification of crypto assets, eliminating credit risks.
Sygnum said that PostFinance extensively analyzed the customers’ investment needs and has revealed the strong demand for digital investment services. Their B2B banking solution allows existing financial institutions to venture into crypto products and services, and their alliance with PostFinance, will be followed by other banks.
The Chief Investment Officer of PostFinance, Philipp Merkt, feels that Digital assets are slowly becoming integral to the financial realm. Bank is providing their customers with access to this market. An alliance with a reputed and established entity like Sygnum Bank will greatly help provide customers with what they need.
What Will This Partnership Provide?
This new partnership will allow PostFinance to provide revenue-generating services like crypto staking, a process in which a small amount of crypto assets is locked for a pre-decided period. The staking help in securing the blockchain network and stakers are rewarded in exchange for their efforts.
Sygnum’s staking offers include Ethereum (ETH), Cardano (ADA), Tezos (XTZ), and Internet Computer (ICP). The bank is continually expanding its B2B offerings.
It currently involves 25 leading cryptocurrencies and Decentralized Finance focused on more than 60 trading pairs.
It has four leading fiat currencies, available for deployment by PostFinance flexibly.
In June 2021, Sygnum launched institutional-grade custody and trading services for USD Coin and a wide portfolio of DeFi tokens like Aave (AAVE), Aragon (ANT), Curve (CRV), Synthetic (SNX), Maker (MKR), 1inch (1INCH), and Uniswap (UNI).
The Implication of this Partnership
Switzerland is known for its banking heritage– the next crypto evolution could be from the nation. The involvement of the national bank in crypto can be the right step in integrating traditional finances with blockchain and cryptocurrency. As with the current world financial scenario, such collaborations are much required. If the collaboration does as expected and lives up to the Swiss banking standards, it may greatly influence the world financial scenario.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/04/05/swiss-bank-postfinance-launches-crypto-services-with-sygnum/