Swiss state-owned bank Postfinance to offer Bitcoin trading
Switzerland State-Owned Bank Postfinance Offers Bitcoin Trading As of now, it offers cryptocurrency custody service, cryptocurrency stamp collection, and cryptocurrency support. PostFinance, a retail bank wholly owned by the Swiss government, is preparing to offer its customers cryptocurrency trading custody services.
Key Takeaways
- PostFinance is partnering with Sygnum to offer cryptocurrency custody and trading services.
- Cryptocurrency trading is part of PostFinance’s broader strategy to explore digital services and modernize its business.
- Bitcoins and Ether can be purchased, stored, and sold by PostFinance customers through the Sygnum partnership.
- PostFinance offers cryptocurrency custody, cryptocurrency stamp collection, and cryptocurrency support. Crypto lovers in Switzerland are likely to welcome the move.
- It is risky to invest in cryptocurrencies, but more traditional banks and financial institutions will follow PostFinance and offer digital assets to their customers as the cryptocurrency market matures.
On April 5, PostFinance announced a partnership with local cryptocurrency bank Sygnum to offer regulated digital asset banking to its customers.
This partnership will enable PostFinance customers to purchase, store, and sell major cryptocurrencies, including Bitcoin BTC at $27,940 and Ether ETH at $1,866.
The institutional B2B services Sygnum offers provide banks with access to regulated digital products, including cryptographic services. In addition to its B2B network, it also provides revenue-generating services such as staking for a number of cryptocurrencies.
According to Philipp Merkt, chief investment officer at PostFinance, the bank entered the cryptocurrency market due to growing customer demand.
“Digital assets have become an integral part of the financial world our customers want access to this market from their trusted bank, Post Finance.”
As a financial services division of Swiss Post, the national postal service of Switzerland, PostFinance was founded in 1906. The publicly traded company is known for supporting cryptocurrencies, building a cryptocurrency custody platform, and launching a digital collection linked to physical stamps in 2021.
The announcement of PostFinance’s crypto trading comes shortly after Swiss Post announced the launch of Crypto Stamp 3.0. This is a new iteration of crypto stamps with physical non-fungible token versions integrated with artificial intelligence technology. Post’s new crypto stamps are set to launch on May 2, 2023.
According to PostFinance, the move into cryptocurrency trading is part of its broader strategy to explore new digital services and modernize its business.
The bank said it is also considering offering other digital assets in the future, such as Ethereum and Ripple.
The move by PostFinance is likely to be welcomed by Swiss cryptocurrency enthusiasts, who have been lobbying for greater access to digital assets. However, as with all cryptocurrency investments, users should be aware of the risks involved and only invest what they can afford to lose.
The cryptocurrency market’s volatility can cause prices to fluctuate rapidly, and there have been a number of high-profile hacks and frauds in the industry. In addition, regulatory frameworks for cryptocurrencies can vary widely from country to country, with some countries imposing strict limits on trading and others providing no regulation.
Despite these risks, many investors and traders are flocking to the cryptocurrency market in search of high returns.
Bitcoin, in particular, has seen its value rise dramatically this year, and many analysts believe it is set to continue its upward trajectory in the coming months.
As the cryptocurrency market matures and becomes more accessible to mainstream investors, more traditional banks and financial institutions will likely follow PostFinance’s lead and offer customers access to digital assets.
While the risks involved in investing in cryptocurrencies are not to be underestimated, the potential rewards for savvy investors are significant.