Sygnum Becomes first bank to offer Ethereum 2.0 staking
ETH cements position as highest staked coin
Goldman Sachs analysts predict ETH overtaking BTC
YEREVAN (CoinChapter.Com) — Sygnum, the Swiss crypto bank, has become the first bank to launch an Ethereum 2.0 (ETH2) staking service.
The new development will allow Sygnum clients to stake their Ether (ETH) holdings with the bank in return for a yield of up to 7% per annum. However, the current yield of 7% is not permanent and will be subject to change. As more people take up the bank’s offer and stake their Ether with Sygnum, the interest rate will drop.
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Sygnum had announced earlier that it had received the much-needed FINMA regulatory approval for its digital asset trading facility. FINMA or the Swiss Financial Market Supervisory Authority is the Swiss government body responsible for financial regulation. Banks, insurance firms, stock exchanges, securities dealers, and other financial intermediaries in Switzerland are among the organizations that FIMA supervises. In October of 2019, Sygnum also received a capital markets services license in Singapore.
Since November 2020, the bank offers clients the option to stake for Tezos, a decentralized, open-source energy efficient Proof of Stake blockchain network that can execute peer-to-peer transactions and serve as a platform for deploying smart contracts.
The Ethereum 2.0 staking service provided by Sygnum boasts of being fully integrated with Sygnum’s banking platform. According to the bank, it has a simple, user-friendly setup. With institutional-grade custody and fully segregated wallets, clients hold staked Ethereum in their accounts with the highest security.
According to Thomas Eichenberger, Head of Business Units at Sygnum Bank.
“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”
When it comes to staking cryptocurrency, ETH has unmatched popularity. According to Etherscan, its network users have now staked more than 6.2 million ETH. At the time of writing, the total value of the staked Ether amounted to over $14.8bn at $2,391.67 per ETH, an increase from 5.3 million staked in ETH just a month earlier.
The aggressive increase of staked ETH ahead of London Hard Fork shows that Etherum has solidified its position in the crypto world and is heading for new heights. Despite the high transaction fees and congested traffic, Ethereum has maintained and increased its user base. With the launch of Ethereum 2.0, one will see an increased efficiency with significantly lower environmental impact, scalability, and security. The changes will poise the network for future growth and expansion.
According to analysts at Goldman Sachs, the total market capitalization of ether (ETH) could overtake the total market cap for Bitcoin (BTC) in the coming years.
“[Ether] currently looks like the cryptocurrency with the highest real use potential as Ethereum, the platform on which it is the native digital currency, is the most popular development platform for smart contract applications.” claims a note issued by the financial giant to clients.
According to the analysts at Godman Sachs, Bitcoin’s first move to market had given it an advantage over other crypto chains. However, Etherum has since caught up in the race and is eyeing to replace Bitcoin as the forerunner. Meanwhile, Ethereum’s higher growth rate of 895% compared to Bitcoin’s 275% in the past year also serve as a basis for the optimistic prediction by the analysts.
Moreover, last month experts at Goldman’s Investment Strategy Group (ISG) wrote down the Bitcoin hype. The team of experts told experts that the cryptocurrency was a fail for retail investors. The specialists even pointed out issues with Bitcoin Security in a report issued to retail clients.
With the launch of Etherum 2.0 and the improvement in services, Ethereum may surprise critics by overtaking the total market cap of Bitcoin as it continues to burn ETH in preparation for the London Hard Fork.
Regardless of which cryptocurrency among the two frontrunners reigns supreme, Goldman Sachs analysts believe neither will be able to overtake gold any time soon, owing to stability concerns.
Yerevan-based Editor and writer focusing on topics about cryptocurrencies, NFTs, politics, and international relations. Having completed his Bachelor's and Master's degrees from Delhi's Jawaharlal Nehru University, he currently works as a reporter at CoinChapter.
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