The Swiss-based Sygnum bank has just announced that its users can use the latest XTZ staking service, making it the first regulated financial entity to do so. In today’s Tezos news, we are reading more about it.
Starting today, the users will be able to stake Tezos which is a blockchain protocol that allows users to create their own decentralized applications on its network. The Swiss-based Sygnum bank will provide trading, custody, and staking services for XTZ as a part of the rollout. Tezos’ liquid proof of stake consensus mechanism offers tokens holders the opportunity to delegate their tokens to the validator and earn staking rewards allowing the network participants to earn rewards for helping the maintenance of the network.
Sygnum is the 1st regulated bank to launch @tezos staking with annual stake rewards of up to 5% for its clients.
Click here to read more: https://t.co/VVRFznV6dW#XTZ #Bitcoin #Ethereum #InvestInDigitalAssets #staking #Tezos
— Sygnum Bank (@sygnumofficial) November 6, 2020
All clients participating in the staking service will be eligible to earn rewards of up to 5% per year, which is a courtesy of the Tezos staking network as well as rewards paid out to the validator nodes. As a way of institutionalizing the service, the bank clients can now rely on the bank’s tax impact assessment reports which are available on-demand via e-banking but also the bank will conduct its own due diligence on the select group of Tezos validators that are offered on its platform.
There’s no minimum withdrawal period as the staking positions can be exited at any time so clients can access transactions and independently-confirmed tax reports that are available on-demand via e-banking according to a press release. Tezos’ singular LPOS consensus mechanism enables the protocol to adapt and to adopt new features automatically thus avoiding the hard forks or other network disruptions. This factor with secure smart contracts and a strong ecosystem is what makes Tezos the perfect solution for high-value clients.
Sygnum Bank Chief Clients Officer Martin Burghem said:
“With XTZ staking, our clients can access a unique asset that offers to stake rewards and enables them to structure their digital asset portfolios in more creative ways.”
Sygnum clients can use their traditional fiat deposits in order to purchase, hold or trade XTZ and will also diversify further their digital asset portfolios. They can also increase fiat liquidity with a loan against their XTZ. The protocol is integrated with fiat balances and other protocol tokens as the release added. Each client’s assets are held in highly secure, separated wallets to avoid counterparty risks and available with one click from the Swiss-based bank licensed e-banking platforms from across the world.
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