SEBA Bank, a pioneering leading crypto bank has today launched Ethereum staking services.
- SEBA Bank, a global crypto bank has announced Ethereum staking services in the lead up to the Ethereum Merge.
- Ethereum staking services are designed to cater to growing demand from institutions to manage yield use cases from staking to decentralized finance.
- The total ETH staked has more than doubled over the past year to 13.4 million, approximately 10 percent of the total supply of Ethereum is staked.
The global smart bank simplifies access to the digital assets economy through a suite of fully regulated banking services. The new Ethereum staking services are designed to enable clients to earn staking rewards on Ethereum.
The assets will be secured by an institutional-grade custody solution and a stringent regulatory environment including deposit protection, storage insurance and capital requirements.
This security-first approach to client servicing ensures that investors have round the clock access to assets whatever the market conditions.
The news is timely as the Ethereum Merge is due to take place next week and more institutional-grade services will further facilitate adoption of the worlds second largest cryptocurrency by market cap.
Commenting on the launch Mathias Schütz, Head of Technology and Client Solutions at SEBA Bank says, “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.
Our institutional grade staking services offer a comprehensive and fully integrated platform for earning rewards from investments across a range of leading PoS crypto networks.”
The launch of SEBA Bank’s Ethereum staking services caters to growing demand from institutions to manage a range of digital asset yield use cases from staking to decentralized finance.
SEBA Bank’s staking management platform provides a comprehensive and fully integrated institutional-grade solution for generating rewards from investments on Proof-of-Stake crypto networks.
Ethereum staking services enable clients to earn rewards in a flexible and accessible manner, with rewards provided on a monthly basis, adjustable lock up periods available post-merge and a cost-effective fee structure applied to guarantee asset security.
Institutions can play a pivotal role in securing the network by staking Ethereum. The Ethereum merge is a forthcoming network upgrade that will change the network’s current consensus mechanism from Proof-of-Work (PoW) to PoS.
Along with other improvements, this will enable Ethereum to deliver on its plan of becoming more scalable, secure, and sustainable––reducing its energy consumption by an estimated 99.95%.
Staking ETH significantly ramped up in anticipation of the merge
In a recent report, market research firm Arcane noted that the total ETH staked has more than doubled over the past year to 13.4 million. “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,” says Schütz.
“By launching support for Ethereum staking we continue to deliver our clients the cutting-edge technology that they need to stay apace with the rapidly evolving digital assets industry,” he continued.
It was revealed that there will be no withdrawal option for the ETH staked alongside the merge. Although approximately 10 percent of the total supply of Ethereum is staked, the majority remains unstaked which signals potential for the staking market.
In addition, Ethermine, the worlds largest ETH mining pool also revealed a new staking pool just last week. With this service Ethermine members can collectively stake and earn interest.
Given the size and influence of Ethereum, the merge is likely to have a knock on effect for the industry as a whole.
The next steps in the Ethereum Merge
The merge is expected to take place around the date of September 14.
To prepare for the merge Ethereum developers have been practicing on testnets, checking for bugs or security issues. To date, Ethereum has gone through several testnets, the last one called Goerli.
The path to the mainnet merge involves three main steps. An upgrade called Bellatrix that will help to prepare the Beacon Chain for the merge. The next step is reaching the TTD (Terminal Total Difficulty) value.
TTD is the total difficulty threshold required of the final block mined in Ethereum. Lastly, the developers will go through the Paris upgrade that will take away Ethereum's dependance on proof of work consensus.
Once complete, the already-running Beacon Chain will take over the process of validating new transactions through Proof-of-Stake.
At the time of writing ETH is $1,664, a 4.85% gain in 24 hours.