Swiss bank Sygnum launches Cardano ($ADA) staking service


Cryptocurrency-friendly Swiss bank Sygnum, which bills itself as the “world’s first digital asset bank,” has expanded its staking offering with the launch of a Cardano ($ADA) staking service, allowing customers earn returns on their ADA holdings.

According to an announcement made by the bank, Sygnum’s staking services are “fully integrated into its banking platform, with guaranteed institutional-grade security through separate wallets, secure private key management and a multi-layered security infrastructure.” .

Staking is a way to earn rewards for holding cryptocurrencies that use a Proof-of-Stake consensus algorithm helping to secure the network by helping to ensure that all transactions are verified. Cryptocurrencies using Proof-of-Stake protocols use much less energy than those using Proof-of-Work consensus algorithms.

Delegators on the Cardano blockchain, the announcement adds, earn rewards every five days and can easily access or withdraw their ADA at any time. Thomas Eichenberger, Head of Business Units at Sygnum Bank, said:

As the institutional adoption of digital assets continues to accelerate, the demand for the ability to earn rewards alongside the benefits of the underlying protocols also continues to increase. Sygnum’s bank-grade staking offering, which now includes Cardano, provides our clients with a wide selection of investment opportunities backed by the security and peace of mind of a regulated bank.

Cardano Foundation CEO Frederik Gregaard noted that the new offering allows “Sygnum customers to participate in our ecosystem, where they benefit from a risk-free staking experience without having to transfer the asset or lock it. “.

Sygnum Bank started letting customers stake cryptocurrencies in November 2020, when it launched a Tezos staking option. In July last year, the bank announced that it would offer Ethereum 2.0 staking on its platform, allowing customers to stake their ETH on the Beacon Chain.

The move comes ahead of Cardano’s Vasil hard fork upgrade, which is expected to bring a “massive” performance boost to the cryptocurrency network, but has been delayed for “a few more weeks.”

Ahead of the hard fork, more businesses are betting on ADA, with French cryptocurrency hardware wallet maker Ledger recently adding support for 100 more native tokens on the Cardano network, allowing users to buy, to send and receive these tokens on Ledger Live, the application for managing crypto-assets on Ledger devices.

The Vasil hard fork will involve four Cardano Improvement Proposals (CIPs). Investors bet on it nonetheless, with data from Coinbase’s price pages showing that users of the Nasdaq-listed cryptocurrency exchange have a typical ADA hold time of 153 days, meaning traders of Cardano on the platform retain their assets well before “selling it or sending it to another account or address.

According to the cryptocurrency exchange, a long hold time “signals an accumulation trend,” while a short hold time “indicates increased token movement.”

Earlier this month, a panel of cryptocurrency industry experts predicted Cardano’s price would explode to $2.93 by 2025 and $6.53 by 2030, although which experts estimate that by the end of the year, the cryptocurrency will trade at just $0.63.

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