Bitcoin Suisse – the Swiss crypto brokerage firm – has announced custodial and staking support for Tezos on May 19th, in order to lure more institutional clients to its platform.
Staking has been the hottest trend in the crypto space this year, given major exchanges across space have added support for Tezos [like Bitfinex and Binance.US] and other Proof-of-Stake based tokens. The broker platform would be using its PwC-audited high-security vault to store the staked coins.
The Swiss brokerage firm has over $1 billion worth of assets under its custody and the Tezos delegation and support will be made available via its Bitcoin Suisse Vault.
Proof-of-Stake (PoS) based blockchain platforms allow users to stake their coins for a fixed period of time and earn ‘interest’ on the staked tokens.
The crypto-verse calls it staking ‘rewards' instead of ‘interest’ earnings to avoid regulatory clampdowns, but both processes are quite the same. The only way that staking differs over traditional Interest is that staking offers governing rights to stakers on the blockchain, with staked tokens being used to maintain the blockchain network as well.
Niklas Nikolajsen, the founder of Bitcoin Suisse, is a firm believer in Proof-of-Stake and even suggested that it is a superior consensus to Proof-of-Work. Nikolajsen believes PoW based blockchains, which is Bitcoin primarily, leads to the heavy loss of electricity and is less efficient when compared to PoS systems.
The Bitcoin Suisse platform has been offering Tezos staking services for almost two years now, first started in July 2018, however, under the newly announced scheme, they would use their highly secure and PwC audited vault.
The firm claimed that the decision was taken looking at the increasing interest of institutional clients in various crypto products, especially the staking services, with hopes that their decision would bring in more institutional clients to their platform.
Bitcoin Suisse was also among the partners that supported the latest product of Tezos called tzBTC, which is a bitcoin-backed token on Tezos blockchain.
Roman Schnider, CFO, and Head of Operations at the Tezos Foundation commented on the launch of Bitcoin Suisse secure vault based staking launch saying:
“Tezos was created with fundamental security features like formal verification that allow for institutional-grade smart contract security.
As more institutional adopters and investors get involved with the Tezos protocol, institutional-grade custody services […] will be an integral part of the ecosystem.”