The Swiss government appears to be pushing cryptocurrency closer to its citizens, in contrast to other governments that have expressed opposition to its potential.
Sygnum is a Swiss Financial Market Supervisory Authority-regulated digital asset bank with its headquarters in Zurich (FINMA). Contrarily, PostFinance, which has more than 2.5 million clients, is the fifth-largest retail financial institution in the nation as of 2023.
Traditional financial institutions abroad are rapidly entering the digital asset industry, while cryptocurrency startups in the United States are emigrating to nations with more favorable regulatory environments. In the most recent development, PostFinance, a retail bank owned by the Swiss government, teamed up with Sygnum to provide its clients with a variety of regulated digital asset banking services.
PostFinance Offers Crypto
The B2B banking platform from Sygnum will enable PostFinance clients to purchase, store, and trade popular cryptocurrencies like Bitcoin and Ethereum.
PostFinance stated that it examined the investment requirements of its clients and saw a significant market for online investing services. Starting with the launch, the 117-year-old Swiss Post financial services division will incorporate this new product into its current infrastructure using Sygnum’s B2B banking platform.
In addition to offering a variety of cryptocurrencies, the cooperation will enable PostFinance to launch additional revenue-generating services like staking. Sygnum is one of the few banks in the world that can provide a secure bridge between conventional finance and digital assets since it is a fully regulated digital asset specialist with a Swiss banking license.
Offering Crypto Staking Services
Crypto staking, which entails locking up cryptocurrency for a predetermined amount of time in exchange for rewards, is described in the release as one of the “new revenue-generating services” that PostFinance would allegedly start providing to its clients in collaboration with Sygnum. Notable digital assets including Ethereum, Cardano (ADA), Internet Computer (ICP), and Tezos will all be supported by the staking service (XTZ).
Also, the cooperation offers PostFinance advantages beyond the introduction of cryptocurrency services. According to the release, Sygnum’s B2B banking platform would provide PostFinance and other financial institutions access to the firm’s various banking partners.
Fritz Jost, Chief B2B Officer of Sygnum Bank, commented on the most recent collaboration.
“Our all-in-one B2B banking platform enables our fifteen-plus B2B partner banks to expand their range of regulated digital asset services at scale and speed. We are pleased to empower PostFinance to deliver institutional-grade digital asset services to its customers. We are committed to continuously driving further innovation and positive change for the industry and our partner banks’ customers.”
US Crackdown on Cryptocurrencies
Contrasting sharply with the US crypto market is PostFinance’s embrace of cryptocurrency. The displeasure of the firms who were significantly hit by two disastrous disasters – Terra and FTX – last year is increased by the United States Congress’ refusal to adopt a policy, which is driving industry players to other nations.
Even Coinbase, the largest crypto exchange located in the US, is thinking about relocating a trading division abroad due to regulatory uncertainties. These organizations are increasingly choosing to travel to Europe. Circle, a USDC issuer and fintech business, has revealed the creation of a new office in Paris.