PostFinance, Sygnum Bank Partner for Crypto Offering

PostFinance, in partnership with Sygnum Bank, is launching cryptocurrency services, making it the first systemic bank in Switzerland to do so.

In an alliance with digital asset services provider Sygnum Bank, the Swiss government-owned PostFinance, the fifth-largest financial services company in Switzerland, will establish a cryptocurrency service. Eleven major cryptocurrencies, including Bitcoin (BTC) and Ethereum (ETH), will be available for purchase, storage, and sale to the bank’s 2.5 million customers beginning tomorrow.

With just $50, customers will have access to the service, which can be accessed at any time through the website or mobile app.

Among Switzerland’s systemic banks, PostFinance stands out as the first to provide cryptocurrency services, distinguishing itself from UBS, Raiffeisen Group, and Zürcher Kantonalbank. With CHF 95 billion in deposits, PostFinance is an important deposit-taking institution, even though it acts more as a broker than a direct provider of consumer loans and mortgages. Therefore, the bank partners with other businesses to broaden its service offerings.

Much of the capital leaving Switzerland’s retail banks for the digital asset class was a motivating factor fors to join the cryptocurrency market. Fritz Jost, Chief B2B Officer at Sygnum Bank, stated that PostFinance saw large yearly withdrawals—hundreds of millions of dollars—going into cryptocurrency exchanges. Jost went on to say that this expansion is a chance to gain new customers and a way to increase their revenue.

Although PostFinance and Sygnum worked together last year to bring a retail bitcoin offering to market, the service is just now officially launching.

Crypto Market Invasion by European Banks
It is still unusual to see such widespread retail adoption of bitcoin solutions. Nevertheless, DZ Bank, the second-biggest bank in Germany, has already announced that it plans to launch a cryptocurrency trading pilot later this year.

The bank’s goal is to list many cryptocurrencies and attract clients who can invest “without advice.” It serves 737 cooperative lenders. The Frankfurt-based financial institution will investigate the cryptocurrency market in addition to its $627 billion in managed assets.

A major change has occurred in the Swiss financial scene as a result of the rising demand for digital assets; PostFinance has joined forces with Sygnum Bank to offer cryptocurrency services.