Because the Ethereum network moves from proof-of-work (Bang) consensus to proof-of-stake (PoS), an electronic asset platform initiated something for institutions to dive into Ether (ETH) staking.
Within an announcement delivered to Cointelegraph, Swiss digital asset banking platform SEBA Bank stated it has launched an Ethereum staking service for institutions that are looking to earn yields from staking around the Ethereum network. Based on the firm, the move is really a reaction to the growing institutional interest in decentralized finance (DeFi) services.
Based on Mathias Schütz, a professional at SEBA Bank, the firm believes that institutions may also lead to securing the Ethereum network by staking ETH. Schütz described that:
“The launch in our Ethereum staking services will enable institutional investors to experience a vital role in securing the way forward for the network, using a reliable, secure and fully controlled counterparty.”
The manager believes the approaching Merge is an extremely important milestone for that network when it comes to security, scalability and sustainability. Schütz also added that launching ETH staking for institutions enables their firm to maintain the quickly evolving digital asset space.
Related: Ethereum Merge: How can the PoS transition change up the ETH ecosystem?
Aside from SEBA Bank, other firms also have began to provide staking services awaiting the Ethereum Merge. In June, crypto bank Anchorage Digital also announced its ETH staking service for institutional clients. Anchorage Digital co-founder Diogo Mónica stated that institutional entry into ETH staking is really a “win-win” situation for the ecosystem and institutions.
Meanwhile, Ethereum mining pool Ethermine produced a brand new staking pool for users to stake ETH with each other and receive interest. Users can join the swimming pool having a minimum of .1 ETH. However, the woking platform noted that lower holdings mean greater charges. Right now, the woking platform provides a 4.43% annual rate of interest for ETH staking.
