Cardano Staking Added by Sygnum
1 Cardano Staking Added by Sygnum 2 Expanding the Portfolio 3 What Sygnum Staking Means for Cardano Users 4 ADA’s Battle to Outpace Ethereum
Sygnum Bank is one of the first regulated digital asset banks, offering cryptocurrency-friendly features. It is a pioneer in recognizing staking services as a fundamental part of its platform. The crypto space extends beyond trading, with staking becoming increasingly popular due to its simplicity and the rewards it offers to token holders. Numerous platforms are now integrating crypto staking in a bid to attract more investors into the crypto market. Sygnum Bank is positioning itself as a dominant player by continuously expanding its portfolio of cryptocurrencies available for staking. The addition of Cardano’s ADA token further enhances this growing portfolio.
Staking on Sygnum is accessible to its clients through its eBanking platform. These services are seamlessly integrated into Sygnum’s banking system, ensuring institutional-grade security. The bank’s security features include segregated wallets, secure private keys, and a multi-layer security architecture built into its banking platform.
Staking involves participating in the transaction verification process on a Proof of Stake blockchain, earning rewards in the process. This model differs from Proof of Work, which Bitcoin uses, where the network depends on mining activity. Proof of Stake relies on token holders who lock up their crypto to help maintain the network.
Het uitbreiden van de portefeuille
During the announcement, Thomas Eichenberger, Head of Business Units at Sygnum Bank, discussed the bank’s latest addition, noting that institutional adoption of digital assets is growing. There is also an increasing demand for opportunities to earn rewards through underlying protocols. He takes pride in including Cardano in Sygnum’s bank-grade staking services. This allows the bank’s clients to access a variety of investment options with the security and transparency of a regulated bank.
It is worth noting that ADA Cardano is joining Sygnum’s ever-expanding crypto-staking portfolio. The bank already offers staking services for Proof of Stake currencies such as Internet Computer (ICP) and Tezos (XTZ). It was also the first platform to offer Ethereum 2.0 staking to its clients. CryptoChipy highlights that Sygnum Bank, a major regulated Swiss bank, introduced cryptocurrency staking in November 2020 with Tezos staking. Later, in July 2021, it launched Ethereum 2.0 staking on its platform.
Implications of Sygnum Staking for Cardano Users
Frederik Gregaard, CEO of the Cardano Foundation, expressed excitement about the inclusion of Cardano in Sygnum’s staking services, calling it a great opportunity for institutional investors to engage with the token. The bank’s gross revenues grew tenfold in 2021, and by January 2022, its institutional client base reached nearly 1000. The addition of Cardano staking enables Sygnum clients to participate in the Cardano ecosystem, allowing them to enjoy a risk-free staking experience without needing to transfer or lock their ADA tokens. Gregaard emphasized that Cardano’s architecture offers both retail and institutional clients a unique proposition for holding ADA, with the advantage of receiving rewards every five days. This ensures that users maintain full control over their ADA tokens with no slashing penalties in Cardano.
The Cardano network began offering staking rewards after launching the Shelley mainnet in July 2020. The upcoming Cardano Vasil fork has sparked interest from crypto companies focused on Cardano. For example, Ledger, a hardware wallet company, has announced the integration of 100 Cardano tokens into its wallet software, Ledger Live. Many expect the Vasil fork to enhance Cardano’s network speed and scalability, making it more suitable for smart contracts and decentralized applications.
ADA’s Battle to Outpace Ethereum
There is growing speculation within the crypto community that Cardano is intensifying its staking efforts as Ethereum nears the completion of its Proof of Stake transition. Ethereum’s highly anticipated shift from Proof of Work to Proof of Stake, expected in September, will make the network more eco-friendly. However, this shift could threaten Cardano’s position as one of the leading staking cryptocurrencies, according to CryptoChipy. Ethereum’s popularity could overshadow Cardano, but there are rumors that the Ethereum Merge might be delayed, providing Cardano with a chance to solidify its place in the staking landscape.
