Switzerland’s PostFinance, fully owned by the Swiss government, has announced a partnership with Sygnum Bank to offer its 2.5 million customers access to buy, store and sell cryptocurrencies such as bitcoin and ether. PostFinance is the country’s fifth-largest financial services firm, and this move is in response to the increasing demand from its customers for digital asset investments. The decision was partly driven by the outflows from retail banks in Switzerland into the digital asset class, which amounted to hundreds of millions of Swiss francs per year. PostFinance aims to retain its clients and add a new revenue stream by offering its customers access to digital assets.
The move by PostFinance to offer cryptocurrencies to its customers is part of a wider trend of traditional financial institutions acknowledging the growing demand for digital assets. This demand has been driven by factors such as increased institutional adoption, growing mainstream awareness, and the potential for high returns. As more traditional financial institutions begin to offer crypto products, the market will likely continue to grow and mature.
The partnership with Sygnum Bank is significant as the bank is a regulated digital asset services provider catering to a range of institutions, including Cantonal banks and private banks. Sygnum Bank attained a banking license from Swiss regulators four years ago, making it one of the first banks in the world to do so. This partnership will allow PostFinance to leverage Sygnum Bank’s expertise and established service offering to provide its customers with a reliable and secure way to buy, store, and sell cryptocurrencies.
The decision by PostFinance to offer cryptocurrencies to its customers is in stark contrast to the stance taken by some other countries, such as the US, where there seems to be a concerted effort to stamp out crypto. On the other hand, Switzerland has taken a more open approach to digital assets, leading to the country becoming a hub for crypto startups and projects. The country’s regulatory framework provides clarity and certainty to businesses operating in the digital asset space, which has helped to foster innovation and growth.
PostFinance’s move into the crypto space is a significant development for the industry, demonstrating the increasing demand for digital assets among mainstream investors. As more traditional financial institutions begin to offer crypto products, the market will likely continue to grow and mature, providing investors with more opportunities to invest in this emerging asset class. The partnership with Sygnum Bank provides PostFinance with a reliable and secure way to offer crypto products to its customers. A diverse range of cryptocurrencies is expected to be made available in due course.