Sygnum offers staking services on Ethereum 2.0, with annual interest earnings that can reach 7%. Staking on the network is now supported by at least 2 banks.
A bank fan of Ethereum 2.0
Ethereum 2.0 has won the Swiss bank Sygnum. The company announced in a statement on July 6, 2021, that it is the first bank to launch staking services on Ethereum 2.0. Its customers will now be able to place their Ethers with Sygnum and get an annual return of up to 7%. The remuneration depends on the quantity of staked Ethers. It is inversely proportional to the number of people who immobilize their Ethers on the network.
Is Ethereum 2.0 creating a bridge between new and traditional finance, relegating ideological conflicts to the background? Thomas Eichenberger, head of bussiness units at Sygnum, has indeed given a flattering speech on Ethereum, on the staking on the v2 of the latter, and on the services offered by the bank in this framework:
“Ethereum is the second largest blockchain protocol, and staking on Ethereum is a critical component for digital asset portfolios that are now accessible in a convenient, secure and regulated framework.”
The staking revolution thanks to Ethereum 2.0
Staking on Ethereum 2.0 has been very successful since its launch. The network has recorded more than 6 million Ethers immobilized to date. Will the London upgrade further increase the appeal of staking on Ethereum 2.0 for investors? One of the things this upgrade does is destroy some of the transaction fees, making Ether potentially deflationary.
Sygnum is not the only bank that believes in the potential of Ethereum 2.0. For JPMorgan, the switch to proof-of-work is expected to double revenue from staking cryptocurrencies on blockchains using proof-of-ownership. The bank’s analysts predict an explosion in staking revenue to $40 billion by 2025.
Staking on Ethereum 2.0 is off to a good start ahead of the full deployment of even v2 of the network. The future of DeFi is largely taking shape on Ethereum. However, the latter should not underestimate the competition from alternative blockchains such as Polkadot (DOT) or Polygon, which has attracted Cream Finance into its net.
