Zurich-based digital asset bank now offers clients up to 7% annual returns by staking Ether
Swiss digital asset bank Sygnum announced yesterday that it is offering Ethereum 2.0 staking, becoming the first bank to provide this service. This move expands the bank’s suite of yield-generating products for institutional and private clients.
Less than a month after introducing a portfolio of decentralized finance (DeFi) tokens, Sygnum is broadening its yield offerings. The bank already provides a yield-bearing fixed-term deposit denominated in its Digital Swiss Franc stablecoin (DCHF) and supports Tezos staking. The new Ethereum staking service is integrated directly into Sygnum’s banking platform.
Through this service, Sygnum clients can earn up to 7% annual returns by staking their Ether. Staked ETH is stored in segregated wallets with institutional-grade custody safeguards to ensure security and regulatory compliance.
Thomas Eichenberger, Head of Business Units at Sygnum, said: “Ethereum is the second-largest blockchain protocol, and Ethereum staking is a core element for digital asset portfolios which can now be accessed in a convenient, secure and regulated setting. This further expands Sygnum’s offering of attractive, regulated yield-generating products to meet client needs for returns in addition to capital appreciation.”
As the Ethereum-based DeFi sector grows rapidly, scalability and energy efficiency are increasingly important. Ethereum 2.0’s move to a Proof of Stake consensus mechanism is designed to dramatically reduce energy consumption—estimates indicate the network could use up to 99.95% less energy—while addressing congestion and high gas fees.
Thomas Brunner, Head of Accounts and Custody at Sygnum Bank, added: “Sygnum clients can participate in the new proof-of-stake Ethereum and benefit from potentially higher staking rewards. This is a compelling choice for long-term investors in the Ethereum ecosystem.”
The Beacon Chain, the first phase of the Ethereum 2.0 upgrade, launched in December 2020 and introduced staking to the network. Since launch, approximately 6.2 million ETH has been deposited into the Ethereum 2.0 contract, representing more than 5% of the circulating supply and a substantial value locked in staking.
The full transition to Ethereum 2.0 is expected to take more than a year. The subsequent upgrade phases continue to progress: the London hard fork was deployed on the Ropsten testnet recently, and a proposed activation date for the mainnet has been discussed within the developer community.
By adding Ethereum 2.0 staking to its regulated services, Sygnum aims to offer clients a secure, bank-integrated option to participate directly in network validation while earning staking rewards—combining custody, compliance, and yield in a single platform.