- Sygnum bank has launched Ethereum 2.0 staking.
- Clients’ can generate a yield as high as seven percent per annum.
Sygnum Bank, the world’s first digital asset bank has officially launched Ethereum 2.0 staking. To start, clients can generate a yield of up to seven percent per annum from their existing wallets. According to the official announcement, Sygnum has integrated this service into its banking platform designed to be simple and user-friendly.
Staked Ethereum will be protected with the highest available security and will be held in clients’ individual accounts, taking full advantage of the fully segregated wallet and institutional-grade custody.
The Total Value Locked (TVL) of the Defi sector has grown by more than three times since the start of the year as the majority of the decentralized products and services are based on Ethereum.
Head of Accounts and Custody at Sygnum Bank Thomas Brunner, in a statement, mentioned that this development is for the benefit of the long-term investors.
Sygnum clients can participate in the new proof-of-stake Ethereum and benefit from potentially higher staking rewards now. This is a compelling choice for long-term investors in the Ethereum ecosystem.
Sygnum seeks to support more DeFi assets
Ethereum 2.0 is the long-awaited upgrade of the Ethereum network and has been designed to drastically reduce its environmental impact while it increases efficiency. Scalability and security are part of the main area of focus to position the network for any future growth.
Ethereum 2.0 is the second-largest Proof-of-Stake network by stake capitalization with $13.5 billion. It is only behind Cardano which has a staked capitalization of $31.8 billion.
According to Thomas Eichenberger, Head of Business at Sygnum bank, Ethereum staking emerges as “the core element for digital asset portfolios which can now be accessed in a convenient, secured and regulated setting.”
This further expands Sygnum’s offering of attractive, regulated yield generating products to meet the needs of clients to accumulate other forms of return in addition to capital appreciation.
In August and October 2019, Sygnum Bank obtained its banking license in Switzerland and its capital markets services license in Singapore respectively.
In November 2020, the bank approved staking service for Tezos (XTZ) and later offered a fixed-term deposit product for its Digital Swiss Franc Stablecoin, DCHF.
The bank has over the past few months sought to launch regulated banking services for eight leading tokens as well as provide support for DeFi assets. As it stands, Sygnum is strongly competing with popular native staking providers and centralized exchanges like Kraken.
