Switzerland’s Sygnum Bank announced that its customers could use its institutional-grade banking platform to stake ETH for Ethereum 2.0 from their existing wallets.
Sygnum’s Pioneering Move
Sygnum revealed that it intends to become the first banking institution to provide Ethereum 2.0 staking. In doing so, its clients may be able to earn returns of up to 7 percent per annum (at current estimations).
The bank, which is both Swiss- and Singapore-based, announced that staking services are entirely integrated into its platform, highlighting increased security.
Sygnum Bank also said that Ethereum is a fast-growing network, and as such, staking is an attractive option for long-term investors looking to generate profits. The Head of Business Units at Sygnum Bank – Thomas Eichenberger – commented on the move:
“Ethereum is the second-largest blockchain protocol, and Ethereum staking is a core element for digital asset portfolios which can now be accessed in a convenient, secure and regulated setting. This further expands Sygnum’s offering of attractive, regulated yield generating products to meet the needs of clients to accumulate other forms of return in addition to capital appreciation”
Staking is the process of actively participating in transaction validation on a proof-of-stake (PoS) blockchain. Anyone with a minimum-required balance of a specific cryptocurrency can validate transactions and earn rewards on these blockchains. Apart from Ethereum 2.0, Sygnum Bank provides staking for Tezos alongside a yield-generating fixed-term deposit on its Digital Swiss Franc stablecoin (DCHF).
Over 100K ETH Staked in Ethereum 2.0 in 24 Hours
The new upgrade to the Ethereum network – Ethereum 2.0, aims to improve the blockchain’s security and scalability.
Ethereum is in the process of making a shift from the power-intensive Proof of Work (PoW) to the more efficient Proof of Stake (PoS) consensus algorithm. This also aims to turn Ethereum into a more eco-friendly network.
As it is, the ETH staked into Ethereum 2.0’s testnet currently represents more than 5% of the entire circulating supply of the cryptocurrency.