As the Ethereum network moves from proof-of-work (PoW) consensus to proof-of-stake (PoS), a digital asset platform initiated a service for institutions to dive into Ether (ETH) staking.
In an announcement sent to Cointelegraph, Swiss digital asset banking platform SEBA Bank said that it has launched an Ethereum staking service for institutions that want to earn yields from staking on the Ethereum network. According to the firm, the move is a response to the growing institutional demand for decentralized finance (DeFi) services.
According to Mathias Schütz, an executive at SEBA Bank, the firm believes that institutions can also play a role in securing the Ethereum network by staking ETH. Schütz explained that:
“The launch of our Ethereum staking services will enable institutional investors to play a key role in securing the future of the network, via a trusted, secure and fully regulated counterparty.”
The executive believes that the upcoming Merge is a very important milestone for the network in terms of security, scalability and sustainability. Schütz also added that launching ETH staking for institutions allows their firm to keep up with the rapidly evolving digital asset space.
Related: Ethereum Merge: How will the PoS transition impact the ETH ecosystem?
Apart from SEBA Bank, other firms have also started to offer staking services in anticipation of the Ethereum Merge. In June, crypto bank Anchorage Digital also announced its ETH staking service for institutional clients. Anchorage Digital co-founder Diogo Mónica said that institutional entry into ETH staking is a “win-win” situation for both the ecosystem and institutions.
Meanwhile, Ethereum mining pool Ethermine created a new staking pool for users to stake ETH collectively and receive interest. Users can join the pool with a minimum of 0.1 ETH. However, the platform noted that lower holdings mean greater fees. At the moment, the platform offers a 4.43% annual interest rate for ETH staking.