Boerse Stuttgart Digital, the cryptocurrency branch subsidiary of Germany's second-largest exchange Boerse Stuttgart, is preparing to launch a fully insured cryptocurrency staking service in 2024.
The company has already obtained a digital asset custody license in Germany.
The move is part of a trend of traditional financial institutions expanding their services to include digital assets as the industry matures. This week, Germany's largest lender, Deutsche Bank, announced that it is collaborating with Taurus on digital asset custody and tokenization. Similarly, HSBC has partnered with crypto custody firm Fireblocks.
The developed staking service also includes a unique insurance product designed by global insurance company Munich Re. The product aims to reduce the risks associated with slashing, a penalty imposed on validators on the proof-of-stake blockchain for violating network rules or engaging in malicious activity.
Boerse Stuttgart Digital is part of the Boerse Stuttgart Group, the sixth largest exchange group in Europe. Earlier this year, it received a license to store digital assets from German financial watchdog BaFin through its subsidiary Blocknox GmbH.
The addition of staking services will allow Boerse Stuttgart Digital and its customers to earn rewards on assets stored in the company.
*This is not investment advice.
