While crypto companies in the United States are fleeing to more favorable jurisdictions, traditional financial institutions elsewhere are increasingly tapping the digital asset space. In the latest development, Swiss government-owned retail bank PostFinance partnered with Sygnum to offer its customers a range of regulated digital asset banking services.
Sygnum is a Zurich-based regulated digital asset bank supervised by the Swiss Financial Market Supervisory Authority (FINMA). PostFinance, on the other hand, is the fifth-largest retail financial institution in the country as of 2023, with over 2.5 million customers.
PostFinance Taps Crypto
According to the official announcement, PostFinance customers will be able to buy, store, and sell leading cryptocurrencies such as Bitcoin and Ethereum via Sygnum’s B2B banking platform.
PostFinance revealed analyzing its customers’ investment needs and observed a strong demand for digital investment services. By utilizing Sygnum’s B2B banking platform, the 117-year-old financial services unit of Swiss Post will integrate this new offering into its existing infrastructure starting from the launch.
The press release further explained that the partnership will allow PostFinance to introduce new revenue-generating services, such as staking, in addition to a range of cryptocurrencies. Being a fully regulated digital asset specialist with a Swiss banking license, Sygnum is one of the few banks in the world that can provide a secure bridge between traditional finance and digital assets.
Commenting on the latest partnership, Fritz Jost, Chief B2B Officer at Sygnum Bank, said,
“We are pleased to empower PostFinance to deliver institutional-grade digital asset services to their customers. We are committed to continuously drive further innovation and positive change for the industry and our partner banks’ customers.”
Crypto Exodus from the US
PostFinance embracing crypto depicts a stark contrast to the crypto climate in the US. The failure of the United States Congress to establish a policy is pushing the industry participants to other countries, adding to the frustration of the companies that were severely impacted by two catastrophic falls – Terra and FTX – last year.
Driven by regulatory uncertainty, even the largest US-based crypto exchange – Coinbase – is considering moving a trading unit out of the country. Europe has become a favorable destination for these entities as well. USDC issuer and fintech company Circle also announced the opening of a new office in Paris.
Featured Image Courtesy of Syndicom