In a groundbreaking move, the Swiss bank PostFinance and the mobile phone operator Swissquote have collaborated to offer their customers the opportunity to stake Ethereum (ETH). This initiative is a significant milestone as it marks the first time a traditional bank has offered cryptocurrency staking services.
The bank's customers will now be able to invest in Ethereum and receive rewards for staking their crypto assets. Staking is a process where users participate in the operation of a proof-of-stake (PoS)-based blockchain by holding and operating the blockchain's cryptocurrency. In return for staking their coins, users receive additional coins as rewards.
PostFinance customers with a Swissquote trading account will be able to transfer ETH into it and start earning rewards in the form of additional ETH. The minimum amount required for staking is 0.1 ETH, and the annual return ranges from 6% to 7%. The rewards are calculated based on the amount of ETH staked and the current network rate.
This groundbreaking service does not come without risks. ETH staking is quite volatile, and the market value of the rewards earned is equally volatile. The bank has warned its customers about potential losses due to these fluctuations. However, for many investors, the potential returns outweigh the risks.
This novel service is part of a broader trend of traditional financial institutions embracing cryptocurrency. Banks and financial institutions worldwide are increasingly acknowledging the potential of crypto assets and are finding ways to integrate them into their services. The move by PostFinance and Swissquote is expected to pave the way for more banks to offer crypto staking services in the future.
This initiative is also a testament to Switzerland's progressive stance on cryptocurrencies. The country has been a pioneer in terms of crypto regulation and acceptance, with numerous crypto and blockchain companies establishing their headquarters there. This move by PostFinance and Swissquote further solidifies Switzerland's reputation as a leading crypto-friendly nation.