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Writer's pictureInoke Faletau

Swiss digital bank, Sygnum, to include Cardano (ADA) in it's bank-grade staking service.

On 2 August 2022, Swiss digital bank Sygnum, made the announcement that it has extended its bank-grade staking service to include Cardano (ADA). Cardano is currently the eighth-largest protocol by market capitalization and reached an all time high ranking of third place in 2021.


Sygnum - Digital Bank


Sygnum markets itself as the world’s first digital asset bank, and a digital asset specialist with global reach. It operates an independently controlled, scalable, and a reported future-proof regulated banking platform that is founded on Swiss and Singapore heritage and operates globally.


The world’s first digital asset bank revealed that "clients can conveniently and securely stake Cardano [ADA]" through the bank’s institutional-grade platform "to generate staking rewards".

Cardano joins Sygnum’s expanding portfolio of bank-grade staking protocols, which also features Ethereum 2.0 (ETH), Internet Computer Protocol (ICP), and Tezos (XTZ), so clients can stake ADA from their existing wallets and earn staking rewards.


The staking services offered by Sygnum are completely integrated with the banking platform it utilizes. Institutional-grade security is assured by segregated wallets, secure private key management, and multi-layer security architecture.


Cardano, which is a third generation blockchain platform launched in 2017, was the first blockchain platform to implement evidence-based scientific peer-reviewed processes prior to the release of any new product, service, or update on its platform.


Staking

Staking is the process of actively participating in the validation of transactions on a Proof-of-Stake blockchain in exchange for staking rewards. In Cardano's case, this occurs when delegators delegate their ADA to an SPO. Proof-of-Stake protocols employ significantly less energy than Proof-of-Work (as is the case with Bitcoin) due to this alternative consensus mechanism. With the Cardano blockchain, delegators get rewards every epoch (five days) and can also access or withdraw their ADA at any time with no required lock up period. The ADA is also retained by the delegator and not "given away" when staked.


Significantly, Cardano has no slashing penalties, which means delegators have complete control over their ADA.





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