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

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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.

🎉 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.
Source

According to the bank, the service would offer investments using Ether $ETH for a fixed minimum term of twelve weeks, with 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 the future, responding to its clientele's evolving interests and demands.

PostFinance's journey into 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, showcasing its commitment to innovation in the financial sector.

PostFinance's introduction of staking services 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, accounting for 28% of staked Ether, while major cryptocurrency exchanges like Coinbase represent 9.5% of the market.

PostFinance's foray into Ethereum staking suggests a larger trend among traditional financial institutions integrating cryptocurrency services. For instance, in September 2024, Zurich Cantonal Bank, one of Switzerland's largest banks, began offering trading and custody services for Bitcoin and Ether, allowing customers to trade cryptocurrencies directly through their e-banking platforms. Similarly, in November 2023, St.Galler Kantonalbank partnered with SEBA Bank to introduce Bitcoin and Ether trading to its customers, reflecting a nationwide shift towards embracing digital assets.

The launch of Ethereum staking services by PostFinance is expected to bridge traditional banking with the burgeoning world of digital assets for the banking population of Switzerland. 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 as a forward-thinking hub in the global financial sector.

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