InCore Bank will offer Ethereum staking services for its customers using the SDX Web3 services. Staking will be an attractive way for Ethereum holders to earn rewards once the upcoming Shapella upgrade is implemented, allowing for the payout of ETH earned from staking.
InCore can now offer Ethereum staking services that are fully compliant with Know-Your-Customer (KYC) and Anti-Money Laundering (AML) regulations. In this collaboration, the B2B transaction bank provides cryptocurrency trading, banking operations, and custody services, while the SIX Digital Exchange (SDX) provides Web3 cryptocurrency custody and staking services.
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Expansion of crypto strategy for Swiss private bank
The Zurich-based private bank Maerki Baumann launched its crypto strategy back in 2019. In addition to offering accounts for businesses focusing on blockchain technology and crypto applications, the bank provides crypto trading and custody services in partnership with InCore Bank. Maerki Baumann will expand its crypto offering by making the new Ethereum staking services available to its private and corporate clients in the technology banking sector.
"We are seeing increasing demand for staking services - and thus the ability to participate in the decentralized economy (DeFi). InCore Bank's fully integrated and forward-looking staking services via segregated wallets enable us to offer staking in a convenient, secure, regulated, and tax-compliant framework. We are proud to be part of the strategic partnership with SDX." - Mark Dambacher, CEO InCore Bank
What is Ethereum Staking?
Blockchain networks are based on the principle of decentralization, with no central authority deciding on the transaction history. However, a consensus mechanism is necessary to securely validate transactions in the correct order in a decentralized manner. Typically, blockchains achieve consensus through either Proof of Work (PoW) or Proof of Stake (PoS) mechanisms. PoS blockchains do not require energy-intensive computing power to ensure consensus.
Staking is a term used to describe the act of pledging crypto assets to a protocol in exchange for certain rewards. Staking allows ETH investors to participate in securing the network by providing and locking their cryptocurrencies in the Ethereum blockchain as working capital. The "stakers" become validators who add new transactions to the blockchain while following the consensus rules, which define the rules that network participants must follow. If a validator violates these rules during this process, the user risks their own capital in the form of the "staked" tokens. This ensures that validators have an incentive to follow the network's rules.
