The Zurich-based digital asset bank offers its customers an annual return of up to 7% on the ethers they use
Swiss digital asset bank Sygnum announced yesterday that it will offer Ethereum 2.0 staking, making it the first bank to do so.
Less than a month after the introduction of a portfolio of decentralized financial tokens (DeFi), the Zürcher Bank is expanding its range of profit-generating products. In addition to Tezos staking, Sygnum already offers a return-generating fixed-term deposit on its Digital Swiss Franc Stablecoin (DCHF).
Now Sygnum customers can also achieve annual returns of up to 7% by using their Ether through a service that is fully integrated into the banking platform. Staked Ether is stored in segregated wallets with institutional custody to keep them safe.
The Sygnum Business Area Manager, Thomas Eichenberger, stated: “Ethereum is the second largest blockchain protocol, and Ethereum staking is a core element for digital asset portfolios that can now be accessed in a convenient, secure and regulated environment. This further expands Sygnum’s range of attractive, regulated return products to meet customer needs to achieve other forms of return in addition to capital appreciation. “
As the Ethereum-based DeFi sector is growing exponentially, a highly scalable Ethereum is becoming increasingly necessary. As Ethereum 2.0 moves the network to the less energy-intensive proof-of-stake consensus mechanism, it is estimated that the updated network could use 99.95% less energy, reducing Ethereum’s environmental impact and solving the problems of congestion and rising gas costs.
Thomas Brunner, Head of Accounts and Custody at Sygnum Bank added:Sygnum customers can participate in the new Proof-of-Stake Ethereum and now benefit from potentially higher staking rewards. This is a compelling choice for long-term investors in the Ethereum ecosystem. “
The Beacon Chain – the first stage of the Ethereum 2.0 upgrade – was introduced in December 2020 along with staking. Since then, 6.2 million ETH have been involved in the Ethereum 2.0 deposit agreement, which is currently worth $ 14.8 billion and accounts for more than 5% of the circulating supply.
It will likely take more than a year for the upgrade to be fully rolled out. However, the next stage of the upgrade – the London Hard Fork – was deployed on the Ropsten testnet last month and August 4, 2021 has just been suggested as the date for its activation on the mainnet.