SEBA Bank Allows Ether Staking Ahead of Merger
- Variable lock-up periods for staking will be available post-merger, alongside a fee structure
- Ether staking on SEBA brings the platform’s total PoS offerings to four, joining Cardano, Tezos and Polkadot
Swiss-regulated crypto platform SEBA Bank has rolled out ether staking services for large clients ahead of the network’s planned merger event later this month.
The vaunted institutional-grade offering allows its users to generate rewards on their ether holdings on a monthly basis, the bank said in a statement.
Variable lock-up periods will be instituted after the merger. No staked ether can be removed from Ethereum’s Beacon Chain until a subsequent network upgrade, dubbed Shanghai, expected in Q2 2023.
The Beacon Channel’s merger with its mainnet, set to go live around September 15, is one of the most anticipated and significant developments in the project’s history.
The event lays the groundwork for increasing network scalability and security while reducing its carbon footprint by moving to proof-of-stake, which is expected to reduce power consumption by more than 99%.
A transition to PoS will remove miners securing the network, replaced by validators that stake ether for privilege. Currently, there are approximately 422,000 validators worldwide, staking 13.5 million ethers (or approximately $20.5 billion at current prices).
Those who deposit more than 32 ETH (approximately $48,500) to SEBA will have a validator activated on their behalf, in this case managed by the bank itself.
“The launch of our Ethereum staking services will allow institutional investors to play a key role in securing the future of the network,” Mathias Schutz, head of technology and client solutions at the bank, said in the statement.
Ether rewards on SEBA joins the bank’s existing PoS offerings, including Cardano, Polkadot and Tezos, first introduced to the market in October last year with the rollout of its Earn product.
Originally founded by former employees of investment banking platform UBS, the Swiss Financial Market Supervisory Authority (FINMA) regulated entity offers crypto custody and storage solutions to large clients.
It became the first company in the country to receive an institutional mandate CISA license by FINMA nearly a year ago to offer custodial solutions to Swiss mutual funds and investment plans using crypto liquid.
Earlier this year, the bank raised 110 million francs ($111 million) in Series C funding to support growth. This round was co-led by a consortium of blockchain and fintech investors alongside participation from crypto exchange FTX, according to a separate statement.
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