Shaurya Malwa · 6 hours ago · 2 min read
Switzerland-based crypto bank Sygnum has become the world’s first regulated financial entity to launch a staking service for a major cryptocurrency, it announced in a post on Friday.
Starting today, users will be able to stake Tezos (XTZ), a blockchain protocol that allows users to build their own decentralized applications atop its network. Sygnum will provide custody, trading, credit, and staking services for XTZ as part of the rollout.
Sygnum is the 1st regulated bank to launch @tezos staking with annual stake rewards of up to 5% for its clients.
— Sygnum Bank (@sygnumofficial) November 6, 2020
Tezos’ Liquid Proof-of-Stake (LPoS) consensus mechanism offers token holders the opportunity to delegate their tokens to a validator and earn staking rewards, allowing network participants to earn rewards for helping to maintain the network.
All clients participating in the staking service will be eligible to earn rewards of up to 5 percent annually, courtesy of Tezos’ staking network, and rewards paid out to validator nodes.
Tezos staking made more accessible
As a way of “institutionalizing” the service, Sygnum clients can rely on the bank’s independently-confirmed tax impact assessment reports which are available on-demand via e-banking. Furthermore, the bank will conduct its own due diligence on the select group of Tezos validators offered on its platform.
There is no minimum withdrawal period, staking positions can be exited at any time, and clients can access transactions and independently-confirmed tax reports available on-demand via e-banking, the release stated.
Tezos’ singular LPoS consensus mechanism enables the protocol to routinely adapt and adopt new features natively and automatically, allowing it to avoid hard forks and network disruptions. This factor, along with its institutional grade, secure smart contracts, and a strong ecosystem of developers and stakeholders, make Tezos an ideal solution for high-value clients.
Martin Burgherr, Sygnum Bank’s Chief Clients Officer, said the launch allows clients to take part in the crypto market and earn rewards for doing so:
“With XTZ staking, our clients can access a unique asset that offers to stake rewards and enables them to structure their digital asset portfolios in more creative ways.”
Major fiat currencies accepted
Sygnum clients can use their traditional fiat currency deposits, including CHF, EUR, SGD, and USD, to securely buy, hold and trade XTZ and further diversify their digital asset portfolios. They can also increase fiat liquidity with a loan against their XTZ.
The protocol is seamlessly integrated with fiat balances, other leading protocol tokens, a Digital CHF token for instant settlements, and a diverse range of asset tokens – all in one account, the release added.
Each client’s assets are held in highly secure, individually segregated wallets to avoid counterparty risks, and are available with one click from Sygnum’s licensed e-banking platform from anywhere in the world.
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