23 September 2023

Digital Technology Guru

Digital Technology Guru Reviews

Boerse Stuttgart Digital Plans to Launch Fully Insured Cryptocurrency Staking Service

2 min read
Boerse Stuttgart Digital Plans to Launch Fully Insured Cryptocurrency Staking Service

Boerse Stuttgart Digital, the crypto-focused subsidiary of the Stuttgart Stock Exchange, has announced its plans to introduce a fully insured cryptocurrency staking service in the coming year. The company aims to cater to the increasing interest from institutional investors in the staking sector, providing a secure and reliable environment for participation.

As part of the development, global reinsurance company Munich Re has collaborated with Boerse Stuttgart Digital to create an insurance product specifically designed to mitigate risks associated with slashing. Slashing refers to the penalization of validators in a proof-of-stake blockchain for violating network rules or engaging in malicious activities, resulting in the suspension or loss of staked tokens.

This move Boerse Stuttgart Digital highlights the growing trend of traditional financial institutions entering the cryptocurrency space. As the digital asset industry continues to mature, financial institutions are recognizing the importance of incorporating crypto services into their offerings. In recent news, Deutsche Bank and HSBC have announced their partnerships with crypto custody firms, and asset management giant Franklin Templeton is vying to list the first spot bitcoin ETF.

Boerse Stuttgart Digital, as part of the Boerse Stuttgart Group, is Europe’s sixth-largest stock exchange group. Earlier this year, the company obtained a license from German finance watchdog BaFin to provide custody services for digital assets through its subsidiary, Blocknox GmbH. By expanding its custody service to include staking, Boerse Stuttgart Digital offers its clients the opportunity to earn rewards on the assets stored with the firm.

This upcoming launch of the fully insured cryptocurrency staking service reflects the commitment of Boerse Stuttgart Digital to meet the demands of institutional investors while ensuring the security and trustworthiness of the staking environment.

Sources:
– CoinDesk