Swiss Zuger Kantonalbank Adds Cardano And Avalanche To Crypto Offering, Partners With Sygnum Bank 99Bitcoins
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Zuger Kantonalbank and Sygnum Expand Crypto Offering with Cardano and Avalanche Fintechnews Switzerland
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Sygnum Bank Expands Staking to Cardano CoinDesk
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Zurich-based Sygnum Bank announced it had expanded its product offerings to include Cardano (ADA) staking. The firm said its clients can now securely stake ADA via its “institutional-grade banking platform to generate staking rewards.”
However, the move has split the Cardano community, with skeptics voicing concerns about institutional adoption being a slippery slope.
Institutional demand for altcoins
Institutional adoption is often associated with Bitcoin because it is considered the most decentralized and secure blockchain. Nonetheless, Sygnum’s move has demonstrated that institutional demand for altcoins also exists.
In addition to ADA, the firm also offers staking services for many other altcoins via its regulated banking platform.
“Cardano (ADA) joins Sygnum’s growing bank-grade staking portfolio, which includes other leading Proof-of-Stake protocols like Ethereum 2.0 (ETH), Internet Computer Protocol (ICP) and Tezos (XTZ).”
Commenting on the news, the CEO of the Cardano Foundation, Frederik Gregaard, welcomed Sygnum Bank to the ecosystem, adding that retail and institutional investors can benefit from staking ADA without transferring or locking up assets.
Meanwhile, Sygnum Bank’s Head of Business Units, Thomas Eichenberger, said institutional adoption of cryptocurrency continues to rise, as does the demand for yield generation. And with the addition of Cardano staking, its product lineup continues to grow.
“Sygnum’s bank-grade staking offering, now including Cardano, offers our clients a broad selection of investment opportunities backed by the security and peace of mind of a regulated bank.”
The Cardano community is split
Blockchain writer @Soorajksaju2 tweeted that he’s divided on whether Sygnum Bank’s addition to the Cardano ecosystem is a positive development. On the one hand, it shows institutional interest in ADA. But then again, this may turn out to be “a slippery slope.”
I am not so sure, if i should be worried or excited!!
This defenitly shows the institutional adoption of digital assets including #Cardano
But institutional staking could be a slippery slope
And compromise #Decentralization down the line!
https://t.co/zWvpur8j75
— Sooraj
(@Soorajksaju2) August 2, 2022
The tweet sparked discussion among community members who shared similar sentiments to the OP.
A recent article from the Financial Times expounded on the issue by saying institutions are now the dominant players in cryptocurrency, accounting for the most significant trading volumes. This was not the case four years ago when retail investors were the market movers.
Commenting on this, investment managers Morgan Stanley said institutional participation is a factor in the high correlation between Bitcoin and equities. And a likely reason why cryptocurrencies do not fulfill the role of alternative investment or inflation hedge.
Digital assets could be considered mainstream as a result of institutional participation.
For those who thought that the crypto-verse was limited to trading, there’s much more to it. Crypto staking has been garnering immense popularity. Earning crypto by holding the designated crypto could allow users to bag rewards. Several platforms have been offering the staking program to lure investors into the market. Sygnum Bank, a prominent digital bank welcomed, decided to expand its program by including Cardano [ADA].
JUST IN:
Swiss digital bank, Sygnum Bank, announced that it is now offering #Cardano staking.
— Watcher.Guru (@WatcherGuru) August 2, 2022
Speaking about its latest inclusion, Thomas Eichenberger, Head of Business Units at Sygnum Bank, said,
“As institutional adoption of digital assets continues to ramp up, demand for the ability to earn rewards alongside upside from the underlying protocols also continues to rise. Sygnum’s bank-grade staking offering, now including Cardano, offers our clients a broad selection of investment opportunities backed by the security and peace of mind of a regulated bank.”
It should be noted that Sygnum Bank offers staking for proof-of-stake [PoS] currencies like Internet Computer [ICP] as well as Tezos [XTZ]. In addition, it became the first platform to offer Ethereum 2.0 staking.
Furthermore, delegators will receive incentives on the Cardano blockchain every epoch, that is, every five days. They would reportedly entail access or withdraw their ADA at any time. Furthermore, there are no slashing penalties in Cardano, so delegators have total control over their ADA.
Is Cardano trying to ramp up staking as Ethereum inches closer to PoS transition?
The highly anticipated shift of Ethereum from proof-of-work [PoW] to PoS is expected to occur in September. With this, Ethereum will become increasingly eco-friendly, and this could put Cardano’s hold over the staking arena at risk. According to CoinMarketCap, Cardano is one of the most valuable staking cryptocurrencies.
The popularity of Ethereum is speculated to put Cardano on the sidelines post ‘The Merge.‘ However, several believe there will be another delay in the upcoming transition, which could aid Cardano in taking over the staking arena.
Speaking about Cardano’s latest move, Frederik Gregaard, CEO of the Cardano Foundation, further said,
“I’m delighted to welcome Sygnum Bank and its clients to our thriving ecosystem. Additionally, Cardano’s state-of-the-art architecture provides both retail and institutional clients a unique experience for ADA-holders. You always have the power over your ADA.”.
Additionally, ADA was trading for $0.4922 with a 5.10 percent daily drop at press time.
Cryptocurrency-friendly bank Sygnum Bank continues expanding its crypto services by launching support for Cardano (ADA) staking.
Sygnum announced on Tuesday that the firm has expanded its bank-grade staking offering with Cardano, allowing clients to generate rewards by staking ADA via the bank’s institutional-grade platform.
ADA joins Sygnum’s growing crypto-staking portfolio, which features three proof-of-stake (PoS) protocols; Internet Computer, Tezos and soon, Ethereum 2.0.
According to the announcement, staking services make up an integral part of Sygnum’s platform and are available to clients through the bank’s eBanking platform. The services are fully integrated with Sygnum’s banking platform, which is designed to provide institutional-grade security by applying segregated wallets, secure private key management and other tools.
Staking is the process of participating in the validation of transactions on a PoS blockchain in exchange for staking rewards. In contrast to proof-of-work (PoW) networks like Bitcoin, PoS blockchains do not need mining activity and instead rely on users locking up their coins to maintain a network.
A major regulated bank in Switzerland, Sygnum debuted cryptocurrency staking about two years ago, launching Tezos staking in November 2020. Sygnum also announced in July 2021 that it would offer Ethereum 2.0 staking on its platform.
The addition of Cardano staking on Sygnum will increase exposure to the digital asset to many institutional investors. Following a tenfold increase in gross revenues in 2021, Sygnum’s institutional client base was nearing 1,000 by early 2022, the firm announced in January.
“This new offering allows Sygnum’s clients to participate in our ecosystem, where they enjoy a risk-free staking experience without having to transfer the asset nor lock it,” Cardano Foundation CEO Frederik Gregaard said. He added that Cardano’s architecture also provides both retail and institutional clients with a unique opportunity for ADA holders. “You always have the power over your ADA,” he noted.
Related: Ethereum staking service Lido announces layer-2 expansion
Amid the upcoming Cardano Vasil hard fork, many crypto companies have been working on Cardano-focused services. In late July, major hardware wallet firm Ledger announced the integration of 100 Cardano tokens on its wallet software Ledger Live.
The Cardano Vasil hard fork is expected to significantly improve the Cardano network in terms of speed and scalability, making it more suitable for smart contracts and decentralized applications. After failing to go live in June, the Cardano Vasil hard fork was delayed again in July. According to Input Output Global, proceeding with the actual fork might take another “few weeks.”
Dynamics Group AG / Key word(s): Product Launch
Sygnum Bank expands bank-grade staking with Cardano (ADA)
02.08.2022 / 07:55
PRESS RELEASE
Sygnum Bank expands bank-grade staking with Cardano (ADA)
Zurich, 02 August 2022 – Sygnum Bank announces today that it has expanded its bank-grade staking offering with Cardano (ADA), the eighth-largest protocol by market capitalisation.[1] Clients can conveniently and securely stake Cardano through Sygnum’s institutional-grade banking platform to generate staking rewards.
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Cardano (ADA) joins Sygnum’s growing bank-grade staking portfolio, which includes other leading Proof-of-Stake protocols like Ethereum 2.0 (ETH), Internet Computer (ICP) and Tezos (XTZ)
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Cardano features a proprietary peer-review process focused on enhancing scalability, interoperability and sustainability[2]
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Staking services are an integral part of Sygnum’s regulated offering, and can be conveniently accessed by clients through Sygnum’s eBanking Platform
Sygnum, the world’s first digital asset bank, announces today that it has expanded its bank-grade staking portfolio with the Cardano blockchain’s native cryptocurrency, ADA. Sygnum already offers staking on Ethereum, Internet Computer and Tezos, with clients now being able to stake Cardano from their existing wallets and earn staking rewards. Sygnum’s staking services are fully integrated with its banking platform, with institutional-grade security guaranteed with via segregated wallets, secure private key management, and multi-layer security infrastructure.
Cardano, which is a third generation blockchain platform launched in 2017, was the first blockchain platform to implement evidence-based scientific peer-reviewed processes prior to the release of any new product, service, or update on its platform. It pioneers innovative technologies with a mission to provide security and sustainability to decentralised applications, systems, and societies globally.
Staking is the process of actively participating in the validation of transactions on a Proof-of-Stake blockchain in exchange for staking rewards. Proof-of-Stake protocols employ significantly less energy than Proof-of-Work due to this alternative consensus mechanism. With the Cardano blockchain, delegators get rewards every epoch (five days) and can also access or withdraw their ADA at any time. Additionally, Cardano has no slashing penalties, which means delegators have complete control over their ADA.
Thomas Eichenberger, Head of Business Units at Sygnum Bank says: “As institutional adoption of digital assets continues to ramp-up, demand for the ability to earn rewards alongside upside from the underlying protocols also continues to rise. Sygnum’s bank-grade staking offering, now including Cardano, offers our clients a broad selection of investment opportunities backed by the security and peace of mind of a regulated bank.”
Frederik Gregaard, CEO of the Cardano Foundation, said, “I’m delighted to welcome Sygnum Bank and its clients to our thriving ecosystem. This new offering allows Sygnum’s clients to participate in our ecosystem, where they enjoy a risk-free staking experience without having to transfer the asset nor lock it. Additionally, Cardano’s state of the art architecture provides both retail and institutional clients a unique experience for ADA-holders. You always have the power over your ADA.”.
“We are pleased to integrate Cardano and further expand our institutional-grade staking offering. With Cardano staking, our clients can access a unique asset which offers staking rewards and enables them to structure their digital asset portfolios in more diversified ways”, adds Thomas Brunner, Sygnum Bank’s Head of Accounts & Custody.
ENDS
About Sygnum
Sygnum is the world’s first digital asset bank, and a digital asset specialist with global reach. With Sygnum Bank AG’s Swiss banking licence, as well as Sygnum Pte Ltd’s capital markets services (CMS) licence in Singapore, Sygnum empowers qualified investors, corporates, banks, and other financial institutions to invest in the digital asset economy with complete trust. Sygnum operates an independently controlled, scalable, and future-proof regulated banking platform. Our interdisciplinary team of banking, investment, and Distributed Ledger Technology (DLT) experts is shaping the development of a trusted digital asset ecosystem. The company is founded on Swiss and Singapore heritage and operates globally. To learn more about Sygnum, please visit www.sygnum.com.
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Disclaimer: This document was prepared by Sygnum Bank AG. This document may contain forward looking statements and may be subject to change. The opinions expressed herein are those of Sygnum Bank AG, its affiliates, and partners at the time of writing. The document is for informational purposes only and contains general material. It is for use by the recipient only. It does not constitute any advice or recommendation, an offer or invitation by or on behalf of Sygnum Bank AG to purchase or sell assets or securities. It is not intended to be used as a general guide to investing and should be used for informational purposes only. When making an investment decision, you should either conduct your own research and analysis or seek advice from an expert to make a calculated decision. The information and analyses contained in this document have been compiled from sources believed to be reliable. However, Sygnum Bank AG makes no representation as to its reliability or completeness and disclaims all liability for losses arising from the use of this information.
[1] https://coinmarketcap.com/de/
[2] https://docs.cardano.org/new-to-cardano/why-use-cardano
End of Media Release
The Zurich-based digital asset bank is offering clients up to 7% annual returns on their staked Ether
Swiss digital asset bank Sygnum announced yesterday that it would offer Ethereum 2.0 staking, making it the first bank to do so.
Less than a month after rolling out a portfolio of decentralised finance (DeFi) tokens, the Zurich-based bank is expanding its offering of yield-generating products. Sygnum already provides a yield-generating fixed term deposit on its Digital Swiss Franc stablecoin (DCHF), in addition to Tezos staking.
Now, Sygnum clients can also earn annual returns of up to 7% by staking their Ether through a service which is fully integrated with the banking platform. Staked Ether is held in segregated wallets with institutional-grade custody to keep it secure.
Sygnum’s Head of Business Units, Thomas Eichenberger, explained, “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. This further expands Sygnum’s offering of attractive, regulated yield generating products to meet the needs of clients to accumulate other forms of return in addition to capital appreciation.”
With the Ethereum-based DeFi sector growing exponentially, a highly scalable Ethereum becomes increasingly necessary. As Ethereum 2.0 transitions the network to the less energy-intensive Proof of Stake consensus mechanism, it’s estimated that the updated network could use 99.95% less energy, reducing Ethereum’s environmental impact and solving the issues of congestion and soaring gas costs.
Head of Accounts and Custody at Sygnum Bank, Thomas Brunner, added, “Sygnum clients can participate in the new proof-of-stake Ethereum and benefit from potentially higher staking rewards now. 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 – launched in December 2020 along with staking. Since then, 6.2 million ETH has been staked in the Ethereum 2.0 deposit contract, which is currently worth $14.8 billion and represents 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 4 August 2021 has just been proposed as the date for its activation on the mainnet.
Sygnum, a Swiss-based bank, has recently revealed that it will begin offering customers access to Ethereum 2.0 staking through its banking platform. This would make the bank the first bank to offer ETH 2.0 staking to its clients. Sygnum Bank has said that its clients would be able to conveniently and security stake Ethereum through its institutional-grade banking platform. Furthermore, clients can generate up to 7% yield yearly on their staking activities.
This news follows a report from two JP Morgan analysts who forecasted that staking could be a $40 billion industry by the year 2025. They predicted this would come following the total implementation of ETH 2.0 which is expected to make the Ethereum network more secure and scalable.
Related Reading | Ethereum Tests $2,300 Range As Market Adds $70 Billion
The announcement was made on Sygnum’s website on July 6, 2021.
Staking Is A Compelling Choice For Ethereum Investors
According to the announcement on Sygnum’s website, the digital asset bank believes that staking will always be a prime choice for investors in Ethereum. Given the benefits of ETH 2.0, the opportunities are endless for investors.
One of the reasons for this is the exponential growth of decentralized finance (DeFi). DeFi has gained significant popularity in the market these past months and the applications for DeFi are powered by the Ethereum network.
Sygnum is the world’s first digital asset bank. Keeping in line with being first at what they do, they have made the step to add Ethereum 2.0 staking to add to their portfolio of yield generating products.
Ethereum price breaks $2,300 as number of stake coins grows | Source: ETHUSD on TradingView.com
The feature for staking ETH 2.0 is completely integrated with the bank’s platform. Customers will be able to stake the Ethereum they have in their existing wallets on the network through the bank’s infrastructure.
Sygnum provides its clients institutional-grade custody and wallets are fully segregated. This means that clients’ stakes coins will be held in the clients’ individual accounts, with the highest security that the Sygnum platform provides.
This keeps true to Sygnum’s mission of bringing innovative digital assets products to regulated spaces. Signum continues to expand its offers of attractive and yield generating products. And staking is the latest addition to that portfolio.
ETH 2.0 And The Rise Of Staking
ETH 2.0 consists of a series of upgrades that are currently being made to the Ethereum blockchain. The upgrades are meant to make the network safer, faster, efficient, and more scalable going forward.
The most prominent of the upgrades will be the move from proof-of-work currently being used by the network to proof-of-stake. Proof of work currently uses high computational power to confirm transactions via mining blocks. But proof-of-stake only requires validators, who are required to stake 32 ETH, to confirm transactions.
The validators for each transaction will be selected at random to confirm transactions. This completely eliminates the competition that is seen in the proof-of-work mechanisms and hence transactions will require less computational power to confirm because there is not a competition to mine blocks.
Ethereum 2.0 proof of stake mechanism is expected to use about 99% less energy than the current proof of work mechanism.
Related Reading | Ethereum Upgrades Could Jumpstart $40 Billion Staking Industry, JP Morgan
Staking has seen significant growth in the past year. It first became mainstream in the crypto space in 2020. Now, it has grown widely in popularity.
Investors are staking their coins as a way to get rewards for being validators. Staked coins could yield as high as 13% per annum for stakers. This is fast becoming a means of passive income for investors in the crypto community.
As the final date of the move to Ethereum 2.0 draws near, the number of coins staked has increased. There are currently over 6 million ETH staked today. This number accounts for 5% of the total circulating supply of Etherum.
Featured image from Genesis Block, chart from TradingView.com