Digital Asset Bank Sygnum is now offering Ethereum 2.0 staking to customers
The Swiss digital asset bank Sygnum has introduced the Ethereum 2.0 staking service to its customers via its institutional custody platform, as stated in its official blog post.
Customers achieve 7% return annually
Sygnum announced that customers can now use and earn up to 7% annual return. The bank sees itself as the first bank approved by FINMA to join the ETH 2.0 staking space.
Sygnum said the staking services would be fully integrated with the banking platform with an intuitive, easy-to-use setup.
The bank further emphasized how powerful the Ethereum-based decentralized financial applications (DeFi) are.
With a market capitalization of over $ 250 billion, Ethereum is the leading smart contract platform. Several DeFi protocols are being built on top of Ethereum as the DeFi space is growing rapidly.
The company found that Total Value Locked (TVL) in this sector has increased threefold since the beginning of this year.
Thomas Eichenberger, Head of Business Units at Sygnum Bank, said
“Ethereum is the second largest blockchain protocol, and Ethereum staking is a core element for digital asset portfolios that can now be accessed in a convenient, secure and regulated environment.”
The fact that Sygnum enables customers to enter the ETH 2.0 staking space is no surprise, given that the company has already announced that it will offer its customers crypto staking accounts.
In November last year, the bank entered into a partnership with the fintech company Taurus Group. The partnership also revealed a staking service for the Tezos (XTZ) network, a proof-of-stake (PoS) blockchain.
The Digital Asset Bank also actively supports DeFi Assets on their platform. Last month, Sygnum announced that it was launching regulated banking services for seven leading tokens. Tokens include Aave (AAVE), Aragon (ANT), Curve (CRV), Maker (MKR), Synthetix (SNX), Uniswap (UNI) and 1inch (1INCH).
Sygnum also announced that it will handle the custody and trading of stablecoin USD Coin (USDC).
Sygnum was founded in 2018 and describes itself as the first digital asset bank. In August 2019 she received her first banking license in Switzerland and in October 2019 a license for capital market services in Singapore.
The ETH 2.0 project
Ethereum blockchain developers have been working on major changes in the network as part of the Ethereum 2.0 project. The new upgrade is intended to improve the security and scalability of Ethereum.
The changes would result in the network moving from a proof-of-work mechanism to a proof-of-stake system in late 2021 or early 2022.
According to data from Etherscan, more than $ 14 billion has been involved in the ETH 2.0 contract so far.
Sygnum’s ETH 2.0 staking offer follows the Investor Note published last week by the major US bank JPMorgan. JPMorgan discussed the staking shift from Ethereum 2.0 and estimated that cryptocurrency staking could be a $ 40 billion industry by 2025.
Ethereum / USD ETHUSD
2,123.0798– $ 94.48-4.45%
- volume 22.37 b
- change – $ 94.48
- to open$ 2,123.0798
- Circulation 116.62 m²
- Market capitalization 247.59 milliliters
Jimmy has been following the development of the blockchain for several years and is optimistic about its potential to democratize the financial system. When he’s not immersed in the daily events of the crypto scene, he’s watching legal reruns or trying to beat his Scrabble high score.