Sygnum Bank announces today that it is the first bank to offer Ethereum (1) 2.0 staking.
Clients can conveniently and securely stake Ethereum through Sygnum’s institutional-grade banking platform and generate a yield of up to 7 percent per annum currently.
- As a pioneer in bringing innovative digital asset products to the regulated space, Sygnum is continually expanding its offering of attractive, regulated yield generating products such as staking
- Staking services are fully integrated into Sygnum’s banking platform with a simple, user-friendly setup
- With Ethereum powering the exponential growth of decentralised finance (DeFi) applications, staking is a compelling choice for long-term Ethereum investors also seeking attractive yields
Sygnum expands portfolio of digital asset yield generating products with Ethereum 2.0 staking
Sygnum, the world’s first digital asset bank, has launched staking for Ethereum 2.0, the new, upgraded Ethereum network, and clients can now stake Ethereum from their existing wallets to generate a yield of up to 7 percent per annum currently. This service is fully integrated with Sygnum’s banking platform and has a simple, user-friendly setup. With institutional-grade custody and fully segregated wallets, staked Ethereum are held in clients’ individual accounts with the highest security.
Staking involves the locking up of assets to participate in the validation of transactions on proof-of-stake blockchains, with a financial “reward” provided in exchange. This offers a digital asset alternative for yield generation in today’s low or negative interest rate environment. As a pioneer in bringing innovative digital asset products to the regulated space, Sygnum already offers staking for Tezos, as well as a yield-generating fixed term deposit on its Digital Swiss Franc stablecoin (DCHF).
“Ethereum is the second largest blockchain protocol, and Ethereum staking is a core element for digital asset portfolios which can now be accessed in a convenient, secure and regulated setting”, says Thomas Eichenberger, Head of Business Units at Sygnum Bank. “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”, he adds.
Staking a compelling choice for long-term investors in Ethereum
Ethereum is the leading smart contract platform with a market capitalisation of more than USD 250 billion (2). The vast majority of decentralised finance (DeFi) products and services run on Ethereum, and the DeFi space has been growing exponentially – Total Value Locked in DeFi has grown more than 3 times since the start of 2021 (3).
Ethereum 2.0 will see increased efficiency with significantly lower environmental impact, scalability and security, better positioning the network for future growth. Staking was part of the first phase on the roadmap to Ethereum 2.0, which went live in December 2020 with the launch of the Beacon Chain. The full upgrade is expected to take more than a year to complete, but the new blockchain has since proven to be stable, and more than USD 13 billion (4) worth of Ethereum has already been staked.
Thomas Brunner, Head of Accounts and Custody at Sygnum Bank says, “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.“