Swiss-based crypto bank SEBA has launched Ethereum (ETH) staking service for its institutional clients just ahead of the Merge, which is scheduled to take place later this month.
SEBA Customers Can Now Earn ETH Rewards
The Ethereum Merge is a significant software upgrade that will transition Ethereum from a proof-of-work (PoW) consensus mechanism to proof-of-stake (PoS), which will help reduce the network’s energy consumption by more than 99.95%.
According to a press release by SEBA Bank on Wednesday, the newly-launched services will enable the bank’s institutional clients to earn staking rewards on Ethereum “with assets secured by an institutional-grade custody solution and a stringent regulatory environment.”
SEBA noted that the Ethereum staking service will enable its clients to earn rewards in a flexible and accessible manner with rewards provided monthly.
Furthermore, the bank stated that adjustable lock-up periods will be available post-merge and a cost-effective fee structure will be applied to guarantee asset security.
Increasing Institutional Demand
SEBA stated that the new service was introduced due to increasing demand for “institutional-grade” digital asset yields and staking services by clients.
Speaking on the Merge and the new service, Mathias Schütz, Head of Technology & Client Solutions of SEBA Bank, said:
“The Ethereum merge is an anticipated and significant milestone for the world’s second largest cryptocurrency, delivering improvements for its users across the areas of security, scalability and sustainability. 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.”
It is worth noting that before now, the bank’s staking management platform already supported several other PoS protocols including Cardano (ADA), Polkadot (DOT), and Tezos (XTZ). The crypto bank said it also plans to add support for additional protocols in the future.
Meanwhile, in a Coinfomania report last month, Brian Armstrong, CEO of leading crypto exchange Coinbase, said the company would shut down ETH staking services if regulators mandated U.S. exchanges to censor transactions.
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