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PostFinance is expanding its range of regulated digital asset banking services by partnering with local cryptocurrency bank Sygnum.
PostFinance’s Partnership To Introduce 2.5 Million Customers To Crypto
This partnership will allow PostFinance’s customers to buy, store, and sell major cryptocurrencies such as Bitcoin and Ether, responding to the growing demand for digital assets from its customers. To put it in numbers, 2.5 million users will be exposed to cryptocurrencies as a result of this partnership.
PostFinance’s move into crypto marks a significant step in the adoption of cryptocurrencies by traditional banks. The bank is a financial service unit of Swiss Post, the national post service of Switzerland.
Sygnum’s institutional B2B offering provides banks with market entry to regulated and compliant digital products, which includes more than 15 partner banks and supports numerous cryptocurrencies, as well as crypto staking- a popular way for individuals to earn a passive income by leveraging their crypto holdings.
PostFinance’s pro-crypto stance is evident in its past endeavors, including building its own crypto custody platform and issuing digital collectibles linked to physical stamps in 2021.
In the wake of the announcement about its crypto trading services, PostFinance’s parent company Swiss Post also revealed the upcoming launch of Crypto Stamp 3.0, which will include physical and NFT version stamps integrated with artificial intelligence technology. This new iteration of the crypto stamp will be available for purchase from May 2, 2023.
Philipp Merkt, Chief Investment Officer at PostFinance commented on the matter saying “Digital assets have become an integral part of the financial world, and our customers want access to this market at PostFinance, their trusted principal bank,” he further added that “A reputable and established partner like Sygnum Bank with an excellent service offering is more important than ever.”
According to Fritz Jost, Chief B2B Officer at Sygnum Bank, PostFinance’s foray into the cryptocurrency market was motivated, in part, by the shift of funds from traditional retail banks in Switzerland into digital assets.
This indicates a growing trend among retail investors to diversify their investment portfolios by including cryptocurrencies. PostFinance’s entry into the crypto space marks a significant step towards the mainstream adoption of digital assets by traditional financial institutions.
Highlighting the importance of this partnership, Jost said in an interview “PostFinance became aware of a considerable number in the hundreds of millions each year of outflows to crypto exchanges and the like,” “So they saw that this is not only as an opportunity to add a new revenue stream, but also realized that this has a lot to do with client retention.”
PostFinance’s crypto services will enable its customers to invest in cryptocurrencies and take advantage of the potential gains and losses that come with them. While this newfound liberty may be exciting for investors, practicing caution is important as crypto markets can be very volatile.
Crypto’s Acceptance by Major Institutions To Accelerate Crypto Adoption
PostFinance’s recent decision to offer cryptocurrency trading and storage services to its 2.5 million customers is a significant move that could accelerate the pace of adoption among traditional finance users. This move by the Swiss government-owned retail bank marks a major step towards the mainstream acceptance of cryptocurrencies and blockchain-based technologies.
The recent banking crisis has contributed fairly towards traditional investors extending their portfolio to cryptocurrencies to hedge their investments against economical volatility. In addition to this, rising interest rates have pushed investors towards exploring cryptocurrencies as they seek alternatives to earn a higher return on their investments.
PostFinance’s recent decision to offer cryptocurrency trading and storage services to its 2.5 million customers is a significant move that could accelerate the pace of adoption among traditional finance users.
This move by the Swiss government-owned retail bank marks a major step towards the mainstream acceptance of cryptocurrencies and blockchain-based technologies. The mainstream adoption of digital assets is not limited to PostFinance alone, however.
S&P Global is actively seeking a DeFi director who will be responsible for driving the company’s expansion into the decentralized finance space. This move is indicative of the increasing attraction that traditional financial institutions have towards blockchain-based technologies and cryptocurrencies.
Nasdaq is also planning to launch its much-awaited crypto custody service by the end of the second quarter to meet the increasing institutional interest and demand for crypto services. This move by Nasdaq highlights the growing demand for secure and reliable crypto custody solutions.
Institutional investors are also showing an increasing interest in digital assets. In a survey conducted by BNY Mellon in October, 91% of the bank’s institutional investors expressed interest in investing in digital assets. Furthermore, 97% of the respondents claimed 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. According to a report by blockchain adoption analytics platform Blockdata, 44 out of the top 100 public companies by market capitalization across six major sectors are currently utilizing blockchain technology actively.
The growing interest and adoption of cryptocurrencies and blockchain-based technologies by traditional finance institutions indicate that the crypto industry is here to stay. With more companies and financial institutions entering the space, the future looks bright for digital assets.
CBDCs to Bring Crypto To Mainstream
According to Citi analysts, blockchain technology is rapidly approaching an inflection point that will see billions of users and trillions of dollars in value. In their report titled “Money, Tokens, and Games: Blockchain’s Next Billion Users and Trillions in Value,” Citi suggests that the next wave of crypto adoption will be powered by the emergence of central bank digital currencies (CBDCs) and the tokenization of real-world assets.
CBDCs are digital alternatives to cryptocurrencies like Bitcoin or Ethereum, which would be pegged to a fiat currency and controlled by the issuing central bank, such as the Fed or the Bank of England.
The report states that CBDCs could see $5 trillion circulating in the economy by the end of the decade, primarily due to their advantages as an interoperable payment instrument and the general enthusiasm from developing economies.
They estimate that tokenization could grow by a factor of 80x in private markets and reach up to almost $4 trillion in value by 2030, making it the “killer use case” for blockchain technology.
Despite the many advantages of these emerging technologies, there are still several clear roadblocks to overcome, including regulatory clarity and resistance from those in the financial industry who may be at risk of being rendered obsolete by the loss of middlemen these technologies cause.
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