By Shelly Melancon (Switzerland)
A Swiss bank has become the first banking firm to introduce the Ethereum 2.0 staking services to its clients. Sygnum Bank, a traditional finance cum digital bank joins the long list of investors anticipating the complete launch of the Ethereum version 2.0. In its excitement, the bank has been consciously induced to open the broadway for staking on the Ethereum blockchain.
Institutional and retail investors seem to be warming up to the much-anticipated transition on the Ethereum blockchain. The transition will enable a switch from the Proof-of-Work consensus, which the Ethereum blockchain is currently on, to the Proof-of-Stake consensus. As an indication of the momentum building in wait for its full launch, Ethereum investors have joined the platform offering their ETH to act as validators and secure the network.
Sygnum Offers Tezos Staking on its Platform
The new product introduced by Sygnum is the first of its kind in relation to being the only bank in the world that has made this service available to its clients. Clients of the Swiss bank will be able to stake their ETH through the bank. The bank’s platform is where the staking will be done. The annual percentage yield (APY) on Sygnum’s staking platform is currently fixed at 7%. ETH 2.0 staking will not be the first to be offered by the bank though; it also has Tezos (XTZ) staking service including for its digital currency (DHCF) regarded as a stablecoin to generate yields for clients.
While hailing the move as a good one, Sygnum’s Head of Business units, Thomas Eichenberger, said Ethereum staking allows investors to hold crypto assets without worrying about volatility. He further mentioned that the staking service is an essential for institutions like Sygnum to offer investment options in a safe, secure and regulated environment. According to Thomas, the ETH staking service would make the bank’s product offerings. Sygnum while reporting the development in a notice said the ETH 2.0 is a must for long-term investors in the Ethereum community.
6.1 Million ETH Staked; Thousands of Users Join ETH 2.0
Meanwhile, Ethereum 2.0 is already setting records even before its full launch. There are over 6 million ETH staked in ETH 2.0 deposit contract. If nothing else, this is a pure pointer to the fact that the expectations of community members and other investors are really high. The 6 million ETH is estimated to be worth $14 billion. The number of people acting as validators on the new consensus is over 180,000.
Staking is touted to become a major means of earning rewards on crypto. In view of staking, the supply of Ethereum on various crypto exchanges has now reduced as investors withdraw some of their ETH holdings to deposit for staking on ETH 2.0 . Interestingly, some analysts have predicted that there may be an Ethereum flippening by 2022 such that Ethereum’s value and market cap will exceed Bitcoin’s. The latest upgrades on the Ethereum network is contributing to its massive growth.
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