Sygnum becomes first bank ever to offer Eth2 staking
The crypto-focussed Sygnum Bank announced it will allow clients to stake ETH, and it is the first bank to do so.
According to the announcement, bank’s clients can now stake ETH through Sygnum’s institutional banking platform to earn yields of up to seven percent annually.
Sygnum describes itself as the world’s first digital asset bank with having a banking license in Switzerland and a capital markets services license in Singapore during August 2019 and October 2019 respectively.
The bank asserts that the vast majority of decentralized products and services run on Ethereum with Total Value Locked (TVL) has grown in the DeFi sector by more than three times since the start of 2021.
“With Ethereum powering the exponential growth of decentralized finance (DeFi) applications, staking is a compelling choice for long-term Ethereum investors also seeking attractive yields,” the firm said.
In November 2020, Sygnum launched the staking service for Tezos (XTZ) and has offered a fixed-term deposit product for its Digital Swiss Franc stablecoin (DCHF) since March.
Sygnum has been facing competition from many crypto-native staking providers and centralized exchanges, including leading U.S. firms Coinbase and Kraken.
The digital asset bank is also looking to support DeFi assets with launching regulated banking services for some of the leading tokens including UNI, MKR, and CRV last month.