Switzerland’s PostFinance, a fully government-owned retail bank, has announced its plans to launch cryptocurrency trading and storage services for its customers.
The bank has partnered with Sygnum, a local cryptocurrency bank, to provide its customers with a range of regulated digital asset banking services.
PostFinance goes crypto
PostFinance is joining the crypto bandwagon by allowing its customers to buy, store, and sell major cryptocurrencies like Bitcoin and Ether.
The crypto services will be enabled through Sygnum’s institutional business-to-business offering, which provides banks with market entry to regulated and compliant digital products.
Sygnum’s B2B network includes over 15 partner banks and supports a range of cryptocurrencies, featuring revenue-generating services such as staking.
PostFinance’s Chief Investment Officer, Philipp Merkt, stated that the move into crypto is in response to growing demand from customers who want access to this market at PostFinance, their trusted principal bank.
Digital assets have become an integral part of the financial world, and PostFinance’s customers are keen to have access to these services.
PostFinance, founded in 1906, is the financial services unit of Swiss Post, Switzerland’s national postal service. The bank has built a reputation for its pro-crypto stance, building its own crypto custody platform and issuing digital collectibles linked to physical stamps in 2021.
U.S. crypto bank failures and regulatory crackdown
The move by PostFinance into the crypto space comes at a time when U.S.-based crypto firms are struggling to open Swiss bank accounts, following the collapse of two U.S. crypto-focused banks.
Silvergate Capital Corp and Signature Bank, both known for their services to crypto companies, have collapsed, leaving crypto firms with no alternative banks to turn to.
The global banking sector was thrown into turmoil by the recent collapse of Silicon Valley Bank, which sent global bank stocks plunging on Monday on concerns about further contagion.
U.S. regulators have issued multiple warnings to banks about the potential risks of working with crypto companies. While they have not banned it explicitly, they have made it clear that this would be frowned upon.
This regulatory crackdown has forced crypto firms to look to other jurisdictions in search of non-U.S. banks willing to work with the industry. Crypto analysts predict that this will push firms to seek banking partnerships in Europe, Asia, and “offshore.”
Switzerland, known for its private banking sector, has also been one of the more welcoming countries in Europe for crypto firms. The Swiss city of Zug, often referred to as “The Crypto Valley,” has become a hub for blockchain and cryptocurrency companies. Zug is home to several major crypto companies, including Ethereum, ShapeShift, and Xapo.
PostFinance’s move into the crypto space is the latest development in Switzerland’s pro-crypto stance. The country has been a pioneer in the development of cryptocurrency regulations, establishing a clear legal framework for digital assets in 2018.
This framework has made Switzerland an attractive location for crypto firms looking for a stable and secure regulatory environment.
PostFinance’s move into the crypto space is a significant development, indicating a growing acceptance of digital assets in the traditional financial world.
The partnership with Sygnum will enable PostFinance to offer its customers a range of regulated digital asset banking services, including cryptocurrency trading and storage
