Tezos (XTZ) staking receives backing from major Swiss bank.
Sygnum Launches XTZ Staking Support
Switzerland-based regulated bank, Sygnum recently announced the launch of staking support for Tezos (XTZ), an open-sourced blockchain protocol having the backing of more than 1,300 global validators, researchers, and developers.
Recently, Sygnum bank announced the launch of secure custody, trading, credit, and staking services for XTZ.
According to the official announcement, Sygnum clients can now stake their XTZ holdings directly with the bank and immediately start earning staking rewards of up to 5 percent annually. Notably, staking positions can be exited at any time as there is no minimum withdrawal period. Post exiting, clients can easily access transactions and independently-confirmed tax reports.
It’s also worthy of note that Sygnum has conducted “comprehensive due diligence” on all Tezos validators to ensure their reliability before they are offered on the Sygnum platforms.
For the uninitiated, Sygnum offers a wide range of digital asset products and services focused on the B2B market. The Swiss bank is regulated by the Swiss Financial Market Supervisory Authority (FINMA).
Incidentally, the FINMA recently approved a major Russian bank, Gazprombank Ltd., to offer digital currency bank accounts to corporate and retail clients.
The statement by Sygnum declares Tezos as a “resilient open-source blockchain technology that supports smart contract functionality and the development of decentralized applications (dApps).”
Leveraging the Unique Liquid Proof-of-Stake Mechanism
Tezos leverages the Liquid Proof-of-Stake (LPoS) consensus algorithm that offers token holders the opportunity to delegate their tokens to a validator and earn staking rewards, enabling network participants to be rewarded for their contributions to the security and stability of the network.
Commenting on the development, Martin Burgherr, Chief Clients Officer, Sygnum Bank, noted,
“We are strong supporters of Tezos and its unique Liquid Proof-of-Stake governance mechanism, which aligns with our Sygnum values.”
“With XTZ staking, our clients can access a unique asset which offers staking rewards and enables them to structure their digital asset portfolios in more creative ways. Tezos is the first Proof-of-Stake (PoS) token on Sygnum Bank’s platform, where we are continually expanding our offering to provide more choice for our clients.”
Sygnum clients will be able to use traditional fiat currency deposits, including CHF, EUR, SGD, and USD, to securely buy, sell, and trade XTZ to diversify their cryptocurrency portfolios.