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Swiss PostFinance Bank Launches Ethereum Staking To Expand Crypto Offering

    • PostFinance has launched a crypto staking service on the Ethereum protocol.

    • The Swiss bank said it will expand the offering to other cryptocurrencies soon.

    • Mainstream banks and countries now warming up to Bitcoin and crypto.

Digital assets are making inroads into the traditional banking space, at least in Switzerland. PostFinance AG, the Swiss state-owned bank is offering Ethereum staking services.

PostFinance Offers Ethereum Staking for Passive Income

The offer will allow holders of ETH to earn passive income. Meanwhile, PostFinance has assured users that the option of staking other tokens will become available shortly.

For clarity, staking refers to pledging crypto assets on a blockchain to support transaction validations. As a reward, the blockchain allows the owner to earn on locked assets during its staked duration.

In the case of PostFinance, customers can avail the Ethereum staking opportunity for a fee. Hence, customers who embrace this option will get rewarded with ETH at the end of the stipulated period.

Notably, customers receive an annual percentage yield (APY), paid on the staked amount per year.

This development means the Ethereum blockchain could improve its functionality. This is because the staked assets contribute to the overall network health.

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Many experts consider the PostFinance crypto pivot a notable development in traditional banking services. They see it as a signal of the possibilities 2025 holds for the cryptocurrency industry.

Some have speculated that the development might connect to anticipated changes that the sector could witness under the incoming administration in the U.S.

President-elect Donald Trump made significant pledges that could transform the crypto sector in the build-up to his election.

So, financial players beyond the US are positioned to benefit from the anticipated reforms.

Strategic Implications for ETH

According to the PostFinance announcement, the service will be available through the app and E-Finance platform.

In this pilot phase, only Ethereum holders would benefit from the services. However, there are plans for other Proof-of-Stake (PoS) assets.

Speculations as to which coin could come next have been triggered. As per digital assets with staking options that qualify, PostFinance might streamline its options.

Potential digital assets include Cardano, Polygon, Tron, Solana, and Polkadot.

In the interim, Ethereum holders and PostFinance customers can invest weekly with this offer.

The service has a fixed term of 12 weeks. During that period, Ethereum staking rewards are credited to the customer every week and can be sold.

However, investors cannot liquidate the original staking position. That staked position remains locked until it matures.

Crypto enthusiasts expect the same model for other coins when PostFinance introduces them as options.

Will More Traditional Banks Embrace Crypto?

This shift by a mainstream bank towards Ethereum staking marks a notable development.

Particularly given that in 2023, the Swiss Financial Market Supervisory Authority (FINMA) took a restrictive stance towards crypto. FINMA had moved to regulate the crypto industry, including its staking options.

However, this expansionary move suggests that traditional institutions are warming up to the prospects of cryptocurrencies.

For instance, there is a proposal by Swiss officials seeking its Central Bank to purchase and hold Bitcoin as a Strategic Reserve. Initial conversations around a Bitcoin reserve started in the U.S.

Notably, the adoption of a Bitcoin reserve in the U.S and Switzerland may trigger related moves across the globe.

Disclaimer

The contents of this page are intended for general informational purposes and do not constitute financial, investment, or any other form of advice. Investing in or trading crypto assets carries the risk of financial loss. The forecasted data (also called “price prediction”) on this page are subject to change without notice and are not guaranteed to be accurate.

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Godfrey Benjamin
Godfrey Benjaminhttps://www.thecoinrepublic.com/
Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was birthed when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. With his vast experience covering various aspects of Web3, Godfrey's articles has been featured on Blockchain.news, Cryptonews and Coingape, among others.