What Happened: Switzerland-based Sygnum bank announced today that it would allow Ethereum 2.0 (CRYPTO: ETH) staking services to its clients.
In doing so, Sygnum becomes the first bank to offer staking services to the ETH 2.0 deposit contract.
According to the announcement, clients that go through Sygnum’s institutional-grade banking platform can earn a yield of up to 7 percent annually.
“Ethereum is the second-largest blockchain protocol, and Ethereum staking is a core element for digital asset portfolios which can now be accessed in a convenient, secure, and regulated setting,” said Thomas Eichenberger, head of business units at Sygnum Bank.
Why It Matters: Last week, a report from JPMorgan Chase forecasted that Ethereum 2.0 staking could generate a staking industry worth $40 billion by 2025.
Staking research platform Staking Rewards estimates that Ethereum 2.0 is the second-largest Proof-of-Stake (PoS) network with $13.9 billion in staked value despite only 5 percent of ETH’s circulating supply locked in.
Read also: How to stake Ethereum
The average value of staking rewards offered by ETH 2.0 stake pools is 6.14 percent, which makes Sygnum’s higher yield offering an attractive incentive for new staking participants.
“Sygnum clients can participate in the new proof-of-stake Ethereum and benefit from potentially higher staking rewards now. This is a compelling choice for long-term investors in the Ethereum ecosystem,” commented Sygnum’s Head of Accounts and Custody, Thomas Brunner.
Price Action: Ethereum was trading at $2,360 at the time of writing, gaining 2.07% over the past 24-hours.