Boerse Stuttgart Digital to launch fully insured staking solution for European crypto investors

Boerse Stuttgart Digital has expanded its partnership with Munich Re Group, a global provider of reinsurance, primary insurance, and insurance-related risk solutions.

Together, they aim to introduce an innovative and secure staking solution for both institutional and retail investors.

Elevating the security and reliability of staking services in Europe

The collaboration between Boerse Stuttgart Digital and Munich Re Group marks a significant stride towards elevating the security and reliability of staking services in Europe. The partners intend to offer a comprehensive, fully insured staking solution that could set a new standard for security in the European staking market.

Munich Re Group has developed a cutting-edge staking risk insurance coverage specifically designed to mitigate slashing risks for Boerse Stuttgart Digital.

Slashing, a term used in the context of the Ethereum blockchain, occurs when a validator loses a portion or all of their staked cryptocurrency, typically ETH, due to a breach of specific rules within the Proof-of-Stake consensus mechanism.

These breaches can happen without malicious intent and include actions like proposing two different blocks for the same time slot or confirming two different attestations with the same target block. By partnering with Munich Re, Boerse Stuttgart Digital aims to safeguard investors against such slashing events.

The staking solution will build upon the innovative insurance concept developed by Munich Re, offering coverage in the event of a slashing incident. This collaborative effort to protect investors and validators aligns with the growing interest from institutional investors in the staking sector, who seek secure and reliable environments to participate in staking activities.

“We proudly embrace the role of pioneers”

Oliver Vins, Managing Director of Boerse Stuttgart Digital, said: “We are delighted about the deepened partnership with Munich Re, one of the leading and highly regarded reinsurance providers, as it lays the groundwork for delivering a highly secure and insured staking solution to institutional investors across Europe. 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. At Boerse Stuttgart Digital, we proudly embrace the role of pioneers in addressing this challenge together with Munich Re.”

Andre Knoerchen, Head of New Tech Underwriting at Munich Re, commented: “Digital assets are a key growth opportunity for the financial services industry. Boerse Stuttgart Digital has positioned itself as a prime player with strategic rigor and strong focus on regulatory compliance. Munich Re’s risk-taking capabilities and our Digital Asset Protection insurance perfectly complement this approach. With partners like Boerse Stuttgart Digital and Munich Re combining their strengths, the institutional adoption of digital assets is enabled to progress not only faster but also safer.”

Fully insured staking for institutional and retail investors

Boerse Stuttgart Digital’s expansion into the staking sector follows a successful collaboration with Munich Re Group in the field of crypto custody insurance since 2022. Boerse Stuttgart Digital Custody, operating under blocknox GmbH, holds a license from BaFin to operate as a crypto custodian.

The partnership’s extension into staking seeks to streamline the entry of institutional investors into the staking space, offering a reliable and secure solution while also serving as an alternative income source in proprietary trading.

As Boerse Stuttgart Digital and Munich Re join forces to enhance the security of staking services, they position themselves as pioneers in the European market, set to reshape the landscape for both institutional and retail investors seeking to engage in staking activities with confidence.