Even traditional venues such as The Swiss Sygnum bank continues to explore crypto staking. With a new addition through Cardano’s ADA token after the bank recently announced that it is adding ADA staking to its portfolio.
It facilitates the bank’s users to stake the crypto token and earn rewards through the bank’s institutional program.
Sygnum adds Cardano staking to its growing crypto-staking portfolio
Sygnum bank is among the first digital assets bank through its cryptocurrency-friendly features. It is the first regulated bank that recognises staking services as an integral part of its platform. The crypto verse is not limited to trading with much more on offer. Crypto Staking has gathered much popularity due to the simplicity of earnings it provides holders. Holders of various crypto tokens earn significant rewards. Crypto Lists has observed that several platforms are venturing into crypto staking to attract more investors into the crypto market. Sygnum bank sets the pace as a prominent dominant digital bank by building a portfolio of cryptocurrencies available for staking. The Cardano’s ADA token is an addition to an ever-growing portfolio.
Staking on Sygnum is available to its users via its eBanking platform. These services fully integrate with Sygnum’s banking platform and facilitate institutional-grade security. Its security features include segregated wallets, secure private keys, and multi-layer security architecture integrated within its banking platform.
Staking involves participation in the verification of transactions on a Proof of Stake blockchain while earning staking rewards. It is dissimilar to the Proof of Work model, popular with Bitcoin, where the network relies on mining activity. Proof of Stake models relies on its token holders to lock up their crypto to maintain the network.
During Sygnum bank’s announcement, Thomas Eichenberger, Head of Business Units, referred to the bank’s latest inclusion. He acknowledges that there is an increase in institutional adoption of digital assets alongside an increase in demand for the opportunity to earn rewards with an upside from underlying protocols. He takes pride in that Sygnum’s bank-grade staking now includes Cardano. It offers the bank’s clients a range of investment opportunities supported by the security and transparency of a regulated bank.
It is essential to note that ADA Cardano joins a growing crypto-staking portfolio of Sygnum. The bank also offers Proof of Stake currencies such as Internet Computer (ICP) and Tezos (XTZ). It is also the first platform to offer Ethereum 2.0 staking to its users. Crypto Lists notes that Sygnum bank is a major regulated bank in Switzerland that introduced cryptocurrency staking two years ago by launching Tezos staking in November 2020. It then later announced in July 2021 that it would avail of Ethereum 2.0 staking on its network platform.
What Sygnum Staking means to Cardano Users
The Cardano Foundation CEO, Frederik Gregaard, is delighted for the crypto token to be included in one of the best cryptocurrency staking service providers, Sygnum. It exposes the digital asset to institutional investors. The Sygnum bank’s gross revenues increased tenfold in 2021 and its institutional client base approached 1000 in January 2022. The CEO mentioned that the addition to Sygnum allows Sygnum’s clients to participate in Cardano’s ecosystem. They can enjoy a risk-free staking experience without transferring ADA token asset or locking it. The Cardano CEO also claimed the Cardano architecture provides both the retail and institutional clients a unique proposition for holding the ADA token. Holders are to receive incentives on the Cardano network every five days. It ensures that they can access and withdraw their ADA token. He reiterated that one always has power over their ADA token with no slashing penalties in Cardano.
The Cardano network initiated staking rewards after launching the Shelley mainnet in July 2020. The upcoming Cardano Vasil fork prompted several crypto companies to work on Cardano-focused services. Ledger, a hardware wallet company, announced the integration of 100 Cardano tokens on its wallet software Ledger Live. Many expect the Cardano Vasil fork to upgrade Cardano’s network speed and scalability. This promises to make it more suitable for smart contracts and decentralised applications.
ADA moves to Crush Ethereum
Several parties in the crypto space speculate that Cardano is ramping up staking as Ethereum finalises its Proof of Stake transition. The highly anticipated shift of Ethereum from Proof of Work to Proof of Stake in September means it will be more eco-friendly. This jeopardises the stronghold of Cardano as one of the most valuable staking cryptocurrencies as per Crypto Lists. The effects of the Ethereum Merge could put away Cardano due to the popularity of Ethereum. However, there is speculation of further delay in Ethereum’s transition allowing Cardano to have a foothold in the staking arena.