PostFinance Empowers Clients with Ethereum Staking

Swiss state-owned bank PostFinance is bringing Ethereum staking to the masses, offering its 2.7 million clients—a figure representing nearly 25% of Switzerland’s population—a new investment opportunity.

Announced on January 16, 2025, the service enables customers to participate in ETH staking for a minimum duration of 12 weeks, while also providing the option to cash in their staking rewards.

https://twitter.com/PostFinance/status/1879840246369538060

The launch comes at a time when traditional banks are steadily integrating into the crypto ecosystem. For example, Anchorage Digital set a precedent in December by becoming the first federally chartered bank in the U.S. to offer liquid Ethereum staking.

While the Ethereum network generally requires a minimum of 32 ETH (valued at about $106,000) to stake, PostFinance offers a more inclusive option, letting clients start with as little as 0.1 ETH (roughly $337).

The head of PostFinance’s digital assets department, Alexander Thoma, shared that staking services are directly tied to the Ethereum blockchain, ensuring transparency for users. Customers can easily track their staking earnings within their overall asset reports, alongside other cryptocurrencies.

Although only ETH is available for staking at the moment, the bank intends to broaden its selection of supported assets soon.

PostFinance Expands Its Crypto Footprint

PostFinance’s venture into ETH staking continues its steady embrace of cryptocurrencies. In April 2023, the bank collaborated with Sygnum to provide trading and custody solutions, launching the services in February 2024.

Earlier efforts include a cryptocurrency custody platform introduced in 2022 and the release of digital collectibles tied to physical stamps in 2021.

As the financial arm of Swiss Post since 1906, PostFinance oversees assets totaling $136 billion, reinforcing its position as a major player in both traditional and digital finance, according to SSF.

Understanding ETH Staking

Staking ETH involves locking funds as part of the Proof-of-Stake protocol. This system safeguards the blockchain by holding validators accountable through their staked collateral. Validators who neglect their responsibilities risk losing their locked assets, ensuring reliability and trust within the network.

Related: What is Slashing?

Data from Beacon Chain highlights a continuing surge in Ethereum staking volumes. To date, over 33.9 million ETH have been staked, a sharp rise compared to just 682,000 ETH recorded on December 1, 2020.

Breakdown of the number of active validators and total ETH in staking. Source: beaconcha.in 

As reported by Dune, Lido Finance stands as the frontrunner in the liquid staking sector, accounting for 28% of all ETH staking activity. Coinbase, with a 9.5% share, ranks as the second-largest participant in the market.

Beyond banking solutions, alternative methods like re-staking and liquid staking are gaining traction. These decentralized protocols allow individuals to stake modest amounts of ETH without opening a bank account or involving centralized institutions.