About a year after launching cryptocurrency trading and custody services, PostFinance is expanding its offering to include staking. This new feature allows clients to generate passive income by staking cryptocurrencies. PostFinance is the first systemically important bank to offer this functionality.
Staking involves locking cryptocurrencies within a blockchain network to support its operations. In return, participants receive rewards, often in the form of additional cryptocurrency. It's similar to earning interest on a deposit, but with risks associated with network operations and token value. Customers can now access this service through PostFinance, according to a press release.
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Staking with PostFinance
In February 2024, PostFinance partnered with Sygnum, a FINMA-regulated digital asset banking group, to offer cryptocurrency trading and custody. The service now includes staking functionality available via e-finance and the PostFinance app, initially supporting Ethereum (ETH).
PostFinance plans to add staking for other cryptocurrencies in the near future. The direct benefit for customers is the receipt of "staking rewards", which are regular cryptocurrency incentives. By staking their tokens, crypto investors can generate passive income.
Offer Details
To use PostFinance's staking services, customers need to have a crypto portfolio with the bank and a minimum of 0.1 Ethereum (approximately USD 330). Staked cryptocurrencies are locked for twelve weeks and earnings are regularly credited to the customer's portfolio. Currently, staking Ethereum earns an average of 3.1% per year, with PostFinance taking 20% of these rewards as a service fee.
"The staking service is based on native staking that takes place directly on the Ethereum blockchain, ensuring the highest levels of transparency and security. It is fully integrated into PostFinance's existing services, allowing customers to view their staking rewards alongside other crypto holdings on their portfolio statement." - Dr. Alexander Thoma, Head of Digital Assets at PostFinance
