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.
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
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.