Ethereum News

ETH 2.0: Sygnum to become first bank to offer staking

Switzerland-based Sygnum has announced it is to become the first bank in the world to offer its clients a staking service using Ethereum 2.0.

Building on a reputation as a leading bank offering custodial services for digital assets, Sygnum has decided to extend its yield-generating products through the Ethereum 2.0 offering.

The process will utilise staking integrated with the bank’s institutional-grade platform to facilitate increased asset security and an enticing annual return of up to seven per cent.

Ethereum staking products are aimed primarily at long-term investors, which the bank suggested are drawn to Ethereum as a fast-growing network with attractive profit opportunities.

This represents the first move by a major regulated bank to offer PoS custodian services for Ethereum 2.0, and Sygnum no doubt hope to get the jump on competitors by appealing to investors as a regulated alternative to exchanges.

ETH 2.0 is an upgrade to the second-largest protocol, aimed at replacing the Proof-of-Work (PoW) blockchain mechanism with a new Proof-of-Stake (PoS) algorithm.

It is expected this will increase the energy efficiency of the network and process transactions quicker by utilising a network of validator nodes staking ETH.

Staking activity is increasing rapidly, with more than 6,000,000 ETH staked (worth in excess of $14B) across more than 185,000 validator nodes.

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Sam Cooling

London-based crypto journalist Sam Cooling studied at the London School of Economics (LSE) before working as a Data Technology Consultant for the Fairtrade Foundation. Coin Rivet combines his passion for technology writing with his zeal for the Decentralised Finance revolution. Sam loves providing daily regulatory and alt coin coverage. Outside of the crypto world Sam loves boxing, and spends his time working with NGOs in Zambia.

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