Swiss regulated bank SEBA on Wednesday launched Ethereum stakes for institutional investors.
This development comes just days before the long-awaited integration that will turn the second most valuable blockchain network into a Proof of Stake (PoS) from the PoW transaction proof-of-work (PoW) mechanism.
Institutional Access to ETH Staking
The transition will likely happen sometime in between September 10 and 20September 15th is called the most likely date. Once completed, mining will become obsolete, and the stake will play its designated role in helping validate transactions on the Ethereum network.
As of now, SEBA Bank is providing staking support for Cardano, Polkadot, and Tezos.
“The launch of SEBA Bank’s Ethereum Stake services caters to the growing demand from institutions to handle a range of digital asset returns use cases from Stake to Decentralized Funding (Defi)… Ethereum Stake Services allow clients to earn rewards in a flexible and accessible way, with rewards offered On a monthly basis, adjustable lock-in periods are available after the merger…”, PR from Seba Bank He said on Wednesday.
The offer to install Ethereum from SEBA is significant as it provides institutional access to the staking economy and expands access to sustainable investment products for digital assets. Ethereum’s transition to PoS is coming scale down Its power consumption is around 99.95%.
Matthias Schutz, Head of Technology and Client Solutions, SEBA Bank, commented: “The launch of Ethereum stake services will enable institutional investors to play a key role in securing the future of the network, through a trusted, secure and fully regulated counterparty.”
stinging stokes central fears
Ethereum’s impending move to PoS has raised concerns about the centralization of ETH. In PoS, those with a larger stake have a larger voting share and can determine the state of accounting. If these entities with a controlling interest conspire, they can censor transactions.
Coinbase CEO Brian Armstrong said last month that if US authorities force his platform to censor transactions, he would prefer close ETH staking allows transactions to be monitored.
According to Dune Analytics, 66% of the ETH stacked on the beacon chain is owned by entities regulated by the US Office of Foreign Assets Control (OFAC).
Coinbase and FTX to leverage staking
According to analysts at investment bank JP Morgan, Coinbase, which accounts for 15% of the Ethereum market share, will Features Lots of integration. FTX, Gemini, and Binance will also benefit from Ethereum’s move to ETH2.
Last month, Coinbase release Coinbase Wrapped Stacked ETH (cbETH) token, a floating representation of the ETH stack, for its customers who will participate in the ETH stakes.
Prior to the merger, SEBA launched an Ethereum staking issuance for institutional investors that debuted on CryptoPotato.