Sygnum Becomes First Bank to Offer Ethereum Staking

Key Takeaways

  • Sygnum now supports Ethereum 2.0 staking, offering clients up to 7% annual yield.
  • The move makes Sygnum the first regulated bank in the world to offer Ethereum 2.0 staking.
  • Many other crypto exchanges and pooling services offer ETH 2.0 staking solutions.

Swiss digital assets firm Sygnum has become the first regulated bank in the world to offer ETH 2.0 staking to clients through its institutional-grade custody service.

Sygnum Adds Ethereum 2.0 Staking

Sygnum, a digital assets bank with offices in Switzerland and Singapore, has announced that its clients will be able to stake on Ethereum 2.0 through the bank and earn up to 7% annual yield.

Ethereum 2.0, otherwise known as ETH 2.0, is an upgrade to improve the scalability and sustainability of the Ethereum network by replacing the existing Proof-of-Work (PoW) consensus mechanism with a Proof-of-Stake (PoS) algorithm. It’s been anticipated for several years.

Ethereum is by far the most widely used blockchain platform. It hosts several multi-billion dollar applications, including the vast majority of the decentralized finance and NFT ecosystems.

Thomas Eichenberger, Head of Business Units at Sygnum Bank, said of the update:

“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.”

Once finalized, Ethereum’s ongoing upgrade will consume roughly 99.95% less energy and process transactions exponentially faster than it does today. With Ethereum 2.0, node validators will stake ETH to validate and secure transactions and earn a reward in return.

Ethereum launched the deposit contract for the Beacon Chain in December, which allows Ethereum users to stake 32 ETH in exchange for a yield. For the next phase of the upgrade, which is expected sometime in 2021 or 2022, the Beacon Chain will merge with Ethereum mainnet. Finally, 64 shard chains will be added to the network.

Although more than $14 billion has been staked in the ETH 2.0 contract, staking directly into the Ethereum network can be technically complex and expensive for many investors. 32 ETH costs roughly $65,000 at today’s prices, plus there are other costs to operating a node.

To simplify the staking process, Sygnum will let customers stake funds and earn a yield without implementing a minimum deposit requirement. Thomas Brunner, Head of Accounts and Custody at Sygnum Bank, said:

“Sygnum clients can participate in the new Proof-of-Stake Ethereum and benefit from potentially higher staking rewards now. This is a compelling choice for long-term investors in the Ethereum ecosystem.”

Many crypto exchanges like Binance, Coinbase, and Kraken have announced their plans to offer ETH 2.0 staking. Other pooling services like Rocket Pool and Lido also offer customers ways to stake without accumulating 32 ETH.

Sygnum is the first bank to provide the offering. It holds a traditional banking license and gives customers such as private investors and corporations a way to gain exposure to cryptocurrencies. Besides Ethereum, Sygnum also offers staking for Tezos and provides a fixed-term deposit on its Digital Swiss Franc stablecoin for investors to earn yields.

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

Source: Read Full Article