Swiss digital bank Sygnum has announced that its users can now stake the popular cryptocurrency Cardano (ADA)
Now Sygnum bank customers can place ADA tokens on their crypto wallets and receive rewards for staking cryptocurrency. Sygnum’s digital assets are fully compatible with existing banking infrastructure and are protected using various technologies. This was reported on the bank’s website.
Sygnum made XTZ token staking available about two years ago, in November 2020. A little later, the bank provided users with the opportunity to deposit ICP tokens. In July 2021, the crypto bank announced that it would support Ethereum 2.0 staking after the network upgrade.
What leaders say about innovation
Frederik Gregaard, CEO of Cardano, said that Sygnum customers could enjoy the coin staking service they provide because the bank does not block their funds – users retain control over their tokens.
Staking users participate in Proof-of-Stake verification of transactions on the blockchain and are rewarded for staking. Whereas Proof-of-Work-based blockchains like Bitcoin and the current Ethereum network (before upgrade) require miners to validate transactions and receive BTC or ETH. Those who stake Cardano tokens receive a reward every five days and can claim back ADA tokens at any time.
Thomas Brunner, who is in charge of Sygnum’s accounts and vaults, said the company is pleased with its progress in expanding its staking offerings to institutional clients as it allows them to diversify their portfolio.
The well-known company Ledger, which specializes in producing hardware bitcoin wallets, noted that its wallet supports about 100 Cardano tokens.
An important year for Cardano
By adding the ability to stake ADA tokens, the bank opened access to cryptocurrency for almost 1,000 institutional clients. In 2021, the company’s revenue increased tenfold.
Sygnum Bank AG has a banking license in Switzerland, and Sygnum Capital Markets Services has a banking license in Singapore. In March, the latter received a green light from Singaporean regulators to provide custody services for assets and investment tokens.
Founded in 2017, Cardano was the first blockchain network to use evidence-based, peer-reviewed methods before implementing new features and updates.
The company plans to release the Vasil hard fork sometime this year, although it was expected to take place as early as June. The Vasil hard fork is designed to increase the speed and scalability of the Cardano network.
The company’s previous hard fork was Alonzo, released in September 2021. As part of the hard fork, the long-awaited feature of smart contracts in the Cardano network was activated.