After allowing investors to earn ETH by staking Ethereum, the bank has now done the same with Cardano ADA.
Sygnum, a Swiss-based digital asset bank, has added Cardano (ADA) staking services for institutional clients. Customers of the bank can now earn incentives for staking ADA, the eighth largest cryptocurrency by market capitalization.
Cardano has joined the list of cryptocurrencies supported by Sygnum’s staking offerings, which presently includes Ethereum (ETH), Internet Computer (ICP), and Tezos, according to a press statement (XTZ).
Sygnum now supports ADA Staking.
Sygnum’s Head of Accounts & Custody, Thomas Brunner, commented on the development:
“We are pleased to integrate Cardano and further expand our institutional-grade staking offering. With Cardano staking, our clients can access a unique asset which offers staking rewards and enables them to structure their digital asset portfolios in more diversified ways.”
Staking is the process of “locking” currencies in order to confirm transactions on blockchains that use a proof-of-stake (PoS) consensus algorithm or one of its many variants. Users, known as “stakers,” can delegate their tokens to staking pools in exchange for a percentage return on their contributions to the network.
Staked ADA Investors to Retain Control
According to the statement, Sygnum customers who stake ADA will keep entire control over their funds and will be able to withdraw them at any moment without penalty.
“This new offering allows Sygnum’s clients to participate in our ecosystem, where they enjoy a risk-free staking experience without having to transfer the asset nor lock it. Additionally…You always have the power over your ADA,” Frederik Gregaard, the CEO of Cardano Foundation, said.
Sygnum is valued at $800 million.
Sygnum, the world’s first digital asset bank, was established in 2017. Since then, the Swiss bank has pushed cryptocurrency acceptance through its offers. Before the network’s switch to a PoS consensus mechanism in July 2021, the company became the first bank to offer Ethereum 2.0 staking.
Sygnum received regulatory license to operate in Singapore earlier this year. The bank’s Singapore division acquired a license from the Monetary Authority of Singapore (MAS) to provide corporate finance consulting services, capital market products, and custodial services to Singapore investors, according to the article.
In January, the bank hit a $800 million valuation after obtaining $90 million in a Series B investment round from Animoca Brands and other industry investors.