What is Ethereum 2.0 staking?
Staking is essentially assigning tokens to validate transactions on a proof-of-stake network in exchange for a reward. This means for Ethereum 2.0 that you stake a minimum of 32 ETH and will receive rewards in the form of newly created ETH. Sygnum offers ETH 2.0 Staking-as-a-Service that is conveniently integrated into our e-banking portal.
Ethereum is currently undergoing a major upgrade to Ethereum 2.0. The upgrade will make the network more scalable, secure and sustainable. One key change includes the shift from a proof-of-work consensus mechanism towards proof-of-stake. This enables ETH investors to stake their funds and automatically validate transactions on the network in exchange for a financial reward. The upgrade to Ethereum 2.0 is shipped in separate phases, with the current phase 0 only enabling staking, but not yet transfers or smart contract interactions.
To run a validator on Ethereum 2.0 investors need to deposit a minimum of 32 ETH or multiple thereof, while receiving around five percent per annum in newly created ETH as staking reward in return.
Funds staked in Ethereum 2.0 are currently not transferable and cannot be withdrawn or traded. They are locked up until the Ethereum 2.0 transition phase has reached a level, where funds can be used on Ethereum 2.0.
Background on Ethereum 2.0
Why stake with Sygnum?
Sygnum sets up and maintains an institutional grade staking offering by providing the infrastructure and running the validator to create a convenient offering to investors.
Sygnum holds a Swiss banking license and is an established and trusted counterparty for institutional and professional clients. We are partnering with leading infrastructure providers and use cutting-edge technology to provide a staking offering with the highest levels of security.
- Asset class: Staking
- Launch: 1 December 2020
- Blockchain protocol: Ethereum 2.0
- Base currency: ETH
- Type of return: Variable
- Distribution: Constant
- Minimum investment amount: ETH 32
- Investment time: Undefined
How does it work?
Sygnum’s staking offering is fully integrated into our e-banking platform as a self-servicing product. You can access the offering as follows:
- Fund your Sygnum account with at least 32 ETH
- Initiate the staking process through our e-banking portal
- Start earning