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Swiss bank Sygnum opens Cardano ($ADA) staking service

Published by
Nonhlanhla P Dube

Cryptocurrency-friendly Sygnum, the “world’s first digital asset bank,” has expanded its staking offering by launching a Cardano ($ADA) staking service, allowing clients to receive a yield on their ADA holdings.

Sygnum’s staking services, according to the bank, are “fully integrated with its banking platform, with institutional-grade security ensured via segregated wallets, secure private key management, and multi-layer security infrastructure.”

Staking is a method of receiving incentives for holding cryptocurrencies that use a Proof-of-Stake consensus process by assisting in network security by ensuring that all transactions are confirmed. Cryptocurrencies that use Proof-of-Stake protocols consume far less energy than those that use Proof-of-Work consensus algorithms.

According to the release, Cardano blockchain delegators receive awards every five days and can easily access or withdraw their ADA at any moment. Sygnum Bank’s Head of Business Units, Thomas Eichenberger, was reported as saying:

As institutional use of digital assets grows, so does the demand for the ability to earn rewards alongside upside from the underlying protocols. Sygnum’s bank-grade staking solution, which now includes Cardano, provides our clients with a diverse range of investment opportunities backed by the security and peace of mind of a regulated bank.

According to Frederik Gregaard, CEO of the Cardano Foundation, the new option allows “Sygnum’s clients to engage in our ecosystem, where they enjoy a risk-free staking experience without having to transfer or lock the asset.”

Sygnum Bank initially allowed its clients to stake cryptocurrencies in November 2020, when it introduced a Tezos staking option. In July of last year, the bank announced that Ethereum 2.0 staking would be available on its platform, allowing clients to stake their ETH on the Beacon Chain.

The move comes ahead of Cardano’s Vasil hard fork upgrade, which is intended to provide a “massive” performance boost to the cryptocurrency’s network but has been postponed for “a couple more weeks.”

More companies are betting on ADA ahead of the hard fork, with French cryptocurrency hardware wallet manufacturer Ledger recently adding support for 100 more Cardano network native tokens, allowing users to buy, send, and receive these tokens on Ledger Live, the application for managing crypto-assets on Ledger devices.

Four Cardano Improvement Proposals will be included in the Vasil hard fork (CIPs). Despite this, investors have been betting on it, with data from Coinbase’s price pages revealing that users of the Nasdaq-listed cryptocurrency exchange have a typical ADA hold time of 153 days, implying that Cardano traders on the platform hold their assets for that long before “selling it or sending it to another account or address.”

A long hold time “indicates an accumulating trend,” while a short hold time “indicates increasing token movement,” according to the cryptocurrency exchange.

Earlier this month, a panel of cryptocurrency industry experts predicted that the price of Cardano will skyrocket to R48.98 by 2025, and R109.17 by 2030, though experts estimate that the cryptocurrency will trade at just R10.53 by the end of the year.

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Nonhlanhla P Dube

Nonhlanhla P Dube is a senior news reporter at Rateweb. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her directly by email at nonhlanhla@rateweb.co.za

Published by
Nonhlanhla P Dube
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