Sygnum users get secure access to XTZ custody, trading, credit and stakeout services.
With Staking XTZ, the bank’s clients will receive rewards of up to 5% annually.
According to reports, the bank will use individually segregated wallets to store user money.
Sygnum is the first regulated bank to introduce Tezos stakes (XTZ). The bank made this news in an official announcement on November 6, pointing out that this step means that it will support the safekeeping, trading, lending and staking of the coin. This development is reported to mean that Sygnum users will now be able to deposit and stakeout XTZ through a regulated bank, allowing them to participate in the Tezos network while receiving stakeout bonuses of up to 5% annually.
According to the announcement, the bank’s clients can exit staking positions at any time as there is no minimum payout period. In addition, clients will be able to access transaction and independently verified tax reports, which will allegedly be available on request via e-banking. The bank added that it will subject all Tezos validators (bakers) to due diligence to ensure their reliability before the tokens are used on the Sygnum platform.
By supporting the Tezos stakeout, Sygnum has further strengthened its multi-custody platform, which now includes the Taurus project. The bank is also working with Securosys, a Swiss HSM provider, in an agreement that includes holding its DCHF and asset tokens. Sygnum has reportedly achieved these milestones through its open banking API management layer, which enables the company to offer an ever-growing range of services to banks and other financial institutions.
Reasons for offering Tezos staking services
Sygnum explained why it chose to implement Tezos stakeout services and found that Tezos is a robust open source block chain technology that underpins intelligent contract functionality. The bank added that the network supports the development of distributed applications (dApps). In addition, the coin’s LPoS (Liquid Proof of Stake) consensus mechanism allows users to delegate their coins to a validator and receive rewards for staking out. In this way, users contribute to the security and stability of the network.
Via Sygnum, Tezos’ LPoS consensus mechanism also allows the network to natively and automatically adapt and adopt new features on a regular basis. In this way, the network avoids hard disks and interruptions. Sygnum went on to conclude that the above benefits, together with secure, intelligent institutional-level contracts, a strong team of developers and stakeholders, make the network a perfect solution for valuable applications.
Martin Burgherr, Chief Clients Officer of Sygnum Bank, commented this optimistic development,
“We are strong advocates of Tezos and its unique liquid proof of stake governance mechanism, which is consistent with our Sygnum values. With XTZ Staking, our clients have access to a unique asset that offers staking rewards and allows them to structure their digital asset portfolios in a more creative way. Tezos is the first proof-of-stake (PoS) token on Sygnum Bank’s platform, where we continue to expand our offering to give our clients more choice,” says Tezos.
Multiple purchase options
Per David Fuchs, Head of Corporate Adoption EMEA at the Tezos Foundation, Sygnum’s decision to support the Tezos stakeout confirms the security and longevity of the Tezos network. He added that this move is another significant step towards adoption by institutions and companies. The stakeout service will reportedly enable Sygnum’s customers to use their Fiat deposits to buy, hold and trade XTZ. These include CHF, EUR, SGD and USD. In addition, users will enjoy a high level of security as the bank will keep each client’s funds in individually segregated wallets to avoid counterparty risk.