Swiss State-owned Bank PostFinance Launches ETH Staking

in LeoFinance16 days ago (edited)

KEY FACTS: Switzerland's state-owned PostFinance bank has launched Ethereum (ETH) staking services to enable its 2.7 million clients to participate in Ethereum’s proof-of-stake mechanism with as little as 0.1 ETH, significantly lowering the entry barrier. Integrated seamlessly into customers’ accounts, the staking service offers transparency and convenience. This development is part of PostFinance’s digital asset strategy, including crypto trading and custody services launched in partnership with Sygnum and developing an in-house custody platform.


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Source: PostFinance/X


Swiss State-owned Bank PostFinance Launches ETH Staking

PostFinance, Switzerland's state-owned retail bank, has announced the launch of Ethereum (ETH) staking services for its customers. This adds to the growing integration of traditional banking with the digital asset ecosystem. This initiative will allow the bank's 2.7 million clients, representing approximately a quarter of the Swiss population, to participate in Ethereum's proof-of-stake mechanism directly through their existing bank accounts. The bank communicated the development in a January 16 blog post and on the X platform.


Source🎉 We’re expanding our crypto service and introducing staking. This will allow our customers to generate passive income by depositing cryptocurrencies. ➡️ Find out more: http://postfinance.ch/staking.

According to the bank, the service would offer investments using Ether $ETH for a fixed minimum term of twelve weeks, with users having the opportunity to sell the credited staking rewards.

Traditionally, staking Ethereum requires a minimum commitment of 32 ETH, equating to roughly $106,000. However, PostFinance is lowering this barrier by permitting staking with as little as 0.1 ETH, approximately $331. This approach democratizes access to staking, enabling a broader segment of customers to earn rewards by contributing to the network's security and operations.

Alexander Thoma, head of digital assets at PostFinance, emphasized the seamless integration of the staking service into the bank's existing financial offerings. This means that customers can view their staking rewards directly within their asset statements, alongside other crypto holdings, providing a unified and transparent financial overview. Thoma highlighted that the staking service is based on native staking directly on the Ethereum blockchain, ensuring a secure and efficient process for users.

Currently, PostFinance offers staking exclusively for Ethereum. However, the bank has indicated plans to expand its staking services to include other cryptocurrencies in response to its clientele's evolving interests and demands.

PostFinance's interest in crypto adoption started in April 2023 when the bank partnered with digital asset banking group Sygnum to offer crypto trading and custody services. The venture became operational in February 2024. Before this, in 2022, PostFinance initiated the development of an in-house crypto custody platform, and in 2021, it began issuing digital collectibles linked to physical stamps. This showcased its commitment to innovation in the financial sector.

The introduction of staking services by PostFinance is in tune with the increasing global interest in Ethereum staking. Since the launch of the Beacon Chain in December 2020, the amount of Ether staked has grown significantly, with over 33 million ETH currently staked, compared to 682,000 recorded on December 1, 2020. Liquid staking protocols, such as Lido Finance, hold a substantial market share, which accounts for 28% of staked Ether, while major cryptocurrency exchanges like Coinbase hold 9.5% of the market.

PostFinance's Ethereum staking increases the statistics of traditional financial institutions integrating cryptocurrency services. PostFinance would not be counted alongside Zurich Cantonal Bank and St.Galler Kantonalbank. Zurich Cantonal Bank is one of Switzerland's largest banks which began offering trading and custody services for Bitcoin and Ether, allowing customers to trade cryptocurrencies directly through their e-banking platforms.

With PostFinance launching Ethereum staking services for the banking population of Switzerland, the bridge between traditional banking and the digital assets sector is further strengthened. Through this innovative service, the bank will be able to meet the growing demand for cryptocurrency services by providing accessible and integrated staking options. This will also reinforce Switzerland's position in the global financial ecosystem


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A very smart move for the bank and a plus for Ethereum

@uyobong -- warning. Because I run two crypto newsletters, I know where this news came from, and I don't see a link to the source. What you need to do is

  1. Cite all of your sources
  2. Write in your own words about the news you bring

I'm not letting you know this to condemn you. I'm letting you know so you can fix it in your future posts before you get accused by Hivewatchers of plagiarism and get downvoted into the ground.

Oh, thank you for pointing that out. I thought I had backlinked the keywords. Information sources now added.

You also need to write more of your own words. Give us your opinion and write about that.