Swissquote launches an offering of letting users increase exposure by staking Ethereum with an estimated APY of 5.2%.
Staking Ethereum can now be enjoyed on Swissquote, where clients can be rewarded for serving as transaction validators on the Ethereum blockchain. This process allows users to earn dividends or interest on their Ether holdings.
Through its website, the Swiss online bank conveys the requirements for staking Ethereum, one of which is to provide an estimated annual percentage yield (APY) of 5.28% on tokens staked on the network. Rewards are currently locked, but proceeds will be distributed retroactively once the Ethereum protocol is updated.
In addition, ETH betting users will not be able to cancel bets via tokens that can be traded on the open market.
How does Staking Ethereum Work?
The staking process involves users delegating ownership of tokens to those running the blockchain software with some advantage. The decision was taken due to the approval of retail investors who are open to the idea of earning interest on their crypto assets.
The move also provides another crypto on-ramp for those looking to enter the crypto space, especially traders who came shortly after the Ethereum network's shift from proof-of-work consensus to proof-of-stake.
Not only offer Ethereum staking, but Swissquote also wants to dive deeper into the crypto industry by launching its own cryptocurrency trading platform. Earlier this month, the company released a crypto exchange called 'SQX'. Going forward, the company plans to add stablecoins and staking services, which are currently in high demand, to the list of cryptocurrency offerings.