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.
📣 NEWS: Sygnum first Bank to offer Ethereum 2.0 staking.
Sygnum Bank clients can now conveniently and securely stake Ethereum through Sygnum’s institutional-grade banking platform and generate a yield of up to 7 percent per annum currently.https://t.co/HmGzjkw9pT
— Sygnum Bank (@sygnumofficial) July 6, 2021
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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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.