Digital Asset Bank Sygnum Now Offers Ethereum 2.0 Staking To Clients
Swiss digital asset bank Sygnum has rolled out Ethereum 2.0 staking service to its clients through its institutional-grade custody platform, per its official blog post.
Clients To Earn 7% Yield Annually
Sygnum revealed that clients can now stake and earn up to a 7% annual yield. The bank considers itself as the first FINMA-approved bank to enter into the ETH 2.0 staking space.
Sygnum said the staking services would be fully integrated into the banking platform with an intuitive, user-friendly setup.
The bank further emphasized how powerful the decentralized finance (DeFi) applications built on Ethereum are.
With a market cap of over $250 billion, Ethereum is the leading smart contract platform. Several DeFi protocols are built on Ethereum as the DeFi space has been growing rapidly.
The firm noted that the Total Value Locked (TVL) in the sector had grown over 3x since the beginning of this year.
Thomas Eichenberger, Head of Business Units at Sygnum Bank, said
“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”.
Sygnum’s enablement of clients into the ETH 2.0 staking space comes as no surprise as it has previously indicated its plans to offer customers crypto staking accounts.
The digital asset bank is also actively supporting DeFi assets on its platform. Last month, Sygnum said it was launching regulated banking services for seven leading tokens. The tokens include Aave (AAVE), Aragon (ANT), Curve (CRV), Maker (MKR), Synthetix (SNX), Uniswap (UNI), and 1inch (1INCH).
Sygnum also revealed it would provide custody and trading for stablecoin USD Coin (USDC).
Founded in 2018, Sygnum describes itself as the first-ever digital asset bank. It secured its first banking license in Switzerland in August 2019 and a capital markets services license in Singapore in October 2019.
The ETH 2.0 Project
Developers of the Ethereum blockchain have been working on major changes on the network as part of the Ethereum 2.0 project. The new upgrade is aimed at improving Ethereum’s security and scalability.
The changes would see the network move from a proof-of-work mechanism to a proof-of-stake system towards the end of 2021 or in early 2022.
So far, more than $14 billion has been staked in the ETH 2.0 contract, according to data from Etherscan.
Sygnum’s ETH 2.0 staking offering follows major US bank JPMorgan’s investor note published last week. JPMorgan discussed the Ethereum 2.0 staking shift and estimated that cryptocurrency staking could be a $40 billion industry by 2025.