Crypto-focussed Swiss bank, Sygnum Bank, has announced it has become the first bank in the world to allow its clients to stake Ether.
Sygnum describes itself as the “world’s first digital asset bank,” having secured a banking licence in Switzerland and a capital markets services license in Singapore during August 2019 and October 2019 respectively.
The firm asserts that “the vast majority of decentralized products and services run on Ethereum,” noting the DeFi sector’s Total Value Locked (TVL) has grown by more than three times since the start of 2021:
Thomas Eichenberger, Sygnum’s head of business units, described Ethereum staking as “a core element for digital asset portfolios.”
Sygnum launched a staking service for Tezos (XTZ) in November 2020, and has offered a fixed term deposit product for its Digital Swiss Franc stablecoin, DCHF, since March.
The digital asset bank is also looking to support DeFi assets, launching regulated banking services for eight leading tokens including UNI, MKR, and CRV last month.
According to Staking Rewards, Eth2 is currently the second-largest Proof-of-Stake network by staked capitalization with $13.5 billion, despite only 5% of circulating Ether currently having been locked for staking.
Cardano (ADA) has the largest staked capitalization with $31.8 billion and 70.7% of supply currently locked.