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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