Cardano staking announced by institutional bank Sygnum sparks disagreements in the community on institutional adoption

August 1, 2022

61d65dd132964 1

Cardano staking announced by institutional bank Sygnum sparks disagreements in the community on institutional adoption. Sygnum Bank, located in Zurich, stated that Cardano (ADA) staking has been added to its product offerings. Through its “institutional-grade banking platform to earn staking incentives,” the company stated its customers may now safely stake ADA. The decision, nevertheless, has caused a rift in the Cardano community, with doubters expressing worries that institutional adoption may be a precipice. Bitcoin is frequently linked to institutional adoption since it is the most decentralised and secure blockchain. However, Sygnum’s action has shown that institutional demand for alternative currencies also exists. The company uses its regulated banking infrastructure to provide staking services for several other cryptocurrencies in addition to ADA.

In response to the development, Frederik Gregaard, CEO of the Cardano Foundation, welcomed Sygnum Bank to the ecosystem and said that both institutional and individual investors may profit from staking ADA without moving or locking up assets. The desire for income generation and institutional use of cryptocurrencies are both increasing, according to Thomas Eichenberger, Head of Business Units at Sygnum Bank. Additionally, its product selection is expanding with the inclusion of Cardano staking. The blockchain author @Soorajksaju2 expressed conflicting opinions on whether Sygnum Bank’s integration into the Cardano ecosystem is a good thing or not in a tweet. On the one hand, it demonstrates ADA institutional interest. However, this might end up being “a slippery slope.”

This tweet sparked a discussion among community members who shared the same sentiments as the OP. A recent Financial Times article, “The Institutions Dominating Cryptocurrency Now,” calculated the most important trading volume. Four years ago, when retail investors dominated the market, this was not the case. Morgan Stanley Investment Managers stated: Institutional participation is a factor in the high correlation between Bitcoin and stocks. One of the reasons why digital currencies do not play the role of alternative investment or protection against inflation. Digital assets can be considered the main result of the participation of organizations.

Read more: Will The Breakeven Point For Bitcoin Short-Term Holders Act As Resistance Once More?

Exclusively hand curated news, written precisely in short by our editors for a 60 seconds read! We understand that reading multiple news from various resources could be monotonous, time consuming and less interesting. At Dcryptonews, you will experience a new style of reading news with smart keyword, ease of language that is easy to read for a quick news grasp.