Swiss Bank PostFinance to Offer Crypto Custody Services

UTC by Bhushan Akolkar · 2 min read
Swiss Bank PostFinance to Offer Crypto Custody Services
Photo: Depositphotos

PostFinance will offer crypto custody, trading and savings account services for 11 cryptocurrencies wherein customers can start with as little as $50.

PostFinance, the Switzerland-based financial institution, has recently announced that it will start offering crypto custody services to its 2.5 million customers. The service operations will go live on February 21.

With just a few clicks, customers of PostFinance now have access to purchasing eleven crypto assets, securely storing them, and even setting up a crypto savings plan akin to traditional fund savings schemes. The rollout emphasizes simplicity, transparency, and appealing terms accessible to all.

In April 2023, PostFinance collaborated with crypto firm Synum to bring this service to its retail customers. PostFinance has become the first systematically important bank to provide crypto services. As a subsidiary of SwissPost and the fifth-largest bank in Switzerland by assets, this move marks a significant milestone in the integration of cryptocurrencies into traditional banking systems.

The bank’s customers have the option to invest starting from as little as $50. Furthermore, they can access crypto custody, trading, and savings accounts featuring a selection of 11 cryptocurrencies. Speaking on the development, Philipp Merkt, Chief Investment Officer at PostFinance said:

“Cryptocurrencies represent another investment opportunity and are here to stay. The advantage is that our 2.5 million customers can now easily and securely invest in cryptocurrencies at their bank. In addition to the traditional asset classes of cash, bonds and stocks, cryptocurrencies are an attractive investment opportunity within alternative investments such as real estate and raw materials.”

PostFinance Offers Regulated Services

PostFinance stands out from conventional banks due to its affiliation with SwissPost, which prohibits it from directly issuing loans under the law. Despite the appearance of loan and mortgage options on its website, PostFinance operates primarily as a broker.

With a substantial deposit base of CHF 95 billion in 2022, it primarily focuses on deposit-taking activities. However, it also collaborates with external partners to provide supplementary services, spanning from retirement solutions to stock trading.

“The megatrend of blockchain technology will continue to grow in the future and our customers want to participate in this technology. The need to buy cryptocurrencies and not have to go through poorly regulated crypto exchanges is therefore present among a large proportion of our customers. With our offer, we enable you to do exactly that and more,” said Dr. Alexander Thoma, the Head of Digital Assets.

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