Fully-Insured Crypto Staking Service in the Works by German Finance Leaders
Boerse Stuttgart Digital, the crypto-focused division of the Stuttgart Stock Exchange, has revealed plans to launch a fully insured cryptocurrency staking service.
Boerse Stuttgart Digital is a subsidiary of the Boerse Stuttgart Group, which calls itself Europe's sixth-largest stock exchange group. It’s set to roll out the staking service next year.
In a press release last Tuesday, Dr. Oliver Vins – Managing Director of Boerse Stuttgart Digital, said:
"We have noticed an increasing interest from institutional investors in the staking sector, eagerly anticipating the chance to participate, provided they have complete confidence in the security of the environment.”
Staking is a function available on some blockchains that lets users secure the network by locking away their tokens, and receiving periodic crypto rewards in return.
Though technically a decentralized process that anyone can partake in, staking services like those from Boerse “eliminate obstacles” for institutional investors who don’t wish to shoulder the technical burden or risk involved in the process. Ethereum developer and co-founder Vitalik Buterin has himself expressed reservations about personal staking for this reason.
One of the key partners in Boerse’s endeavor is Munich Re, a renowned global reinsurance company. The firm has designed an insurance product specifically tailored to minimize the risks associated with slashing in proof-of-stake blockchains.
Slashing refers to the punitive action taken against validators who violate network rules or engage in malicious activities, resulting in the suspension or loss of their staked tokens.
By offering a fully insured staking service, Boerse Stuttgart Digital aims to attract a broader clientele, including
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