As the Ethereum network moves towards Proof-of-Work (PoW) consensus Proof-of-Stake (PoS), a digital asset platform launched a service for institutions to dive into Ether (ETH) staking.
In an announcement sent to Cryptooshala, Swiss digital asset banking platform SEBA Bank said it has launched an Ethereum staking service for institutions that want to earn yields by betting on the Ethereum network. According to the firm, the move is a response to the growing institutional demand for decentralized finance (DeFi) services.
According to Mathias Schutz, an executive at SEBA Bank, the firm believes that institutions can also play a role in securing the Ethereum network by staking ETH. Schutz explained that:
“The launch of our Ethereum staking service will enable institutional investors to play a vital role in securing the future of the network through a trusted, secure and fully regulated counterparty.”
The executive believes that the upcoming merge is a very important milestone for the network in terms of security, scalability and stability. Schutz also said that launching ETH staking for institutions helps his firm keep up with the rapidly evolving digital asset space.
Ethereum Merge: How Will the PoS Transition Affect the ETH Ecosystem?
Apart from SEBA Bank, other firms have also started offering staking services in anticipation of the Ethereum merger. In June, crypto bank Anchorage Digital also announced its ETH staking service for institutional clients. Diogo Monica, co-founder of Anchorage Digital, said that institutional entry into ETH stake is a “win-win” situation for both the ecosystem and institutions.
Meanwhile, Ethereum mining pool Ethermine created a new staking pool for users to collectively stake ETH and receive interest. Users can join the pool with at least 0.1 ETH. However, the platform noted that less holding means higher fees. At the moment, the platform offers a 4.43% annual interest rate for ETH staking.
Credit : cointelegraph.com