Swiss Government-Owned Bank to Grant 2.5 Million Users Crypto Capabilities via New Partnership – Crypto Adoption on the Rise?
Major Swiss bank PostFinance has partnered with digital asset services provider Sygnum Bank to offer its customers cryptocurrency trading and storage services.
As part of the partnership, the Swiss state-owned bank will provide its 2.5 million customers access to buy, sell, and store Bitcoin and Ethereum, two of the world's largest cryptocurrencies, with more tokens expected to be added in the future, according to a Wednesday press release.
The bank will tap Sygnum’s institutional business-to-business (B2B) banking platform, which allows financial institutions to enter the crypto markets in a regulated and compliant manner to offer crypto services.
Sygnum’s B2B network includes more than 15 partner banks and supports a “range of cryptocurrencies,” also featuring revenue-generating services like staking.
"Digital assets have become an integral part of the financial world, and our customers want access to this market at PostFinance," Philipp Merkt, Chief Investment Officer of PostFinance, commented.
Founded in 1906, PostFinance is fully owned by the Swiss government and is the fifth-largest financial services firm in the country.
It is also the financial services unit of Swiss Post, which is the national postal service of Switzerland.
The company is known for its pro-crypto stance, building an in-house trading and custody service and issuing digital collectibles linked to physical stamps.
In 2021, PostFinance also partnered with online trading platform Swissquote to develop the Yuh mobile application, which gives users access to traditional shares and stock markets as well as over 25 cryptocurrencies.
Sygnum, which describes itself as the world's first digital asset bank, is fully regulated with a Swiss banking license.
Earlier this year, Sygnum inked a partnership with Ethereum scaling solution zkSync Era to work on several areas, including a proof-of-solvency solution, providing custody options for zkSync Era users via Sygnum-run validator nodes on the protocol, and building on-ramp and off-ramp infrastructure for Sygnum’s client base.
Crypto Adoption Finds Momentum as TradFi Companies Join in
The recent move by PostFinance to offer its 2.5 million customers exposure to crypto could further accelerate the pace of adoption among traditional finance users.
As reported, S&P Global is also looking for a DeFi director to oversee its expansion into the rapidly evolving decentralized finance sector in a move that signifies the mainstream acceptance of cryptocurrencies and blockchain-based technologies.
Furthermore, Nasdaq aims to launch its much-anticipated crypto custody service by the end of the second quarter to meet the increasing institutional interest and demand for crypto services.
In an October survey, BNY Mellon revealed that 91% of the bank's institutional investors are interested in investing in digital assets with 97% claiming that “tokenization will revolutionize asset management” and will be “good for the industry."
It is worth noting that some of the world's largest companies are already using blockchain technology and crypto in some form.
In a report last year, blockchain adoption analytics platform Blockdata said 44 out of the top 100 public companies by market capitalization across six major sectors are currently actively utilizing blockchain.