A company representative told CoinDesk that Boerse Stuttgart Digital, the Stuttgart Stock Exchange’s cryptocurrency-focused division, wants to launch a fully insured cryptocurrency staking service in 2019.
The global reinsurance business Munich Re has created an insurance product specifically aimed at lowering slashing risks as part of the development, the companies said in a news statement on Tuesday. In a proof-of-stake blockchain, slashing refers to punishing validators for breaking network policies or engaging in malicious activities with suspended or lost staked tokens.
As the digital asset market develops and merges more and more with traditional investing services, this is the most recent instance of reputable financial institutions beefing up their cryptocurrency expertise.
This week, it was revealed that HSBC, another major player in the world of banking, was collaborating with the crypto custody company Fireblocks and that Deutsche Bank, the largest lender in Germany, was collaborating with Taurus on digital asset custody and tokenization. Asset management behemoth Franklin Templeton entered the competition to establish the first bitcoin ETF in the United States.
The Boerse Stuttgart company, which claims to be the sixth-largest stock exchange company in Europe, includes Boerse Stuttgart Digital. Through its subsidiary Blocknox GmbH, the business earlier this year received authorization from German financial authority BaFin to custody digital assets.
Through the addition of staking to its custody offering, Boerse Stuttgart Digital is able to offer its clients compensation for storing their assets with them.
Dr. Oliver Vins, managing director of Boerse Stuttgart Digital, said in a statement: “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.”