Institutional bank Sygnum announces Cardano staking, community divided over institutional adoption
based in Zurich Signum Bank We announced that we have expanded our product offering to include Cardano (ADA) staking. The company says clients can now “safely stake ADA”An institution-level banking platform for generating staking rewards. “
However, the move has split the Cardano community, with skeptics expressing concern that institutional adoption is a slippery slope.
Institutional demand for altcoins
Institutional adoption is often associated with Bitcoin as it is considered the most decentralized and secure blockchain. Nonetheless, Signum’s move shows that institutional demand for altcoins also exists.
In addition to ADA, the company also offers staking services for many other altcoins via its regulated banking platform.
“Cardano (ADA) joins Sygnum’s growing bank-grade staking portfolio, which includes other leading proof-of-stake protocols such as Ethereum 2.0 (ETH), Internet Computer Protocol (ICP) and Tezos (XTZ). I will join.”
Frederick Gregard, CEO of the Cardano Foundation, commented on the news and welcomed the participation of the Signum Bank ecosystem, allowing retail and institutional investors to transfer or lock up their assets. He added that he could benefit from staking ADA without spending.
in the meantime, Signum Bank’s head of business, Thomas Eichenberger, said that adoption of cryptocurrencies by institutional investors continues to grow, and demand for yield generation is also increasing. And with the addition of Cardano staking, its product lineup continues to grow.
“Signum’s bank-level staking services, including Cardano, offer our clients a wide range of investment opportunities backed by the security and peace of mind of a regulated bank.”
The Cardano community is divided
blockchain writer @Soorajksaju2 He tweeted that opinions were split on whether the addition of Sygnum Bank to the Cardano ecosystem was a positive development. On the one hand, it shows a systematic interest in the ADA. But this too can be a “slippery slope”.
I’m not sure if I’m worried or excited!!
This undoubtedly points to institutional adoption of digital assets, including: #cardano
But institutional staking can be a slippery slope
and compromise #decentralization Down the line! 👇 https://t.co/zWvpur8j75
— Sooraj 🚢 (@Soorajksaju2) August 2, 2022
The tweet sparked a discussion among community members who shared similar sentiments towards the OP.
Recent articles from financial times Financial institutions explained the issue by stating that they are currently the dominant players in cryptocurrencies, accounting for the most significant trading volume. This was not the case four years ago, when retail investors drove the market.
In this regard, investment manager Morgan Stanley said institutional investor participation was a factor in the high correlation between Bitcoin and equities. And the reason why cryptocurrencies do not play a role as alternative investments or inflation hedges is that
Digital assets may be considered mainstream as a result of institutional participation.
