Swissquote enables staking benefits for Solana (SOL) with 5.2% APY
Swissquote has introduced a staking service for Solana (SOL), which enables users to earn dividends or interest on their SOL holdings just for depositing and holding the token on the platform.
The Swiss online bank posted on its website the terms for staking Solana, noting that it will provide an estimated 5.2% annual percentage yield (APY) on tokens staked in the Solana network, with rewards distributed every three days.
Notably, staking positions can be exited at any time as there is no minimum withdrawal period. Yield rates, however, are subject to change and are largely dependent on fluctuations in the total amount of tokens locked up through staking on each given network.
“Based on Proof of Stake and Proof of History, the Solana platform is designed for both individuals and companies thanks to its low transaction costs, capacity to adapt and its processing speed. The platform has also helped popularise NFTs, and has become a major player in decentralised finance (DeFi),” the company explains.
The process involves the users delegating their token holdings to those running the blockchain software in exchange for sharing some profit. The decision was taken in the context of huge interest from retail investors who were open to the idea of earning interest on their crypto assets.
Swissquote is looking to delve further into the digital-asset arena with the launch of its own cryptocurrency trading platform.
Jan De Schepper, chief sales and marketing officer at Swissquote, said month he expects the crypto exchange to be run and operational before the end of September 2022. To further sweeten the offering, Switzerland’s largest online bank plans to add stablecoins and staking services, which are currently in high demand, to the list of cryptocurrency offerings.
The new service combines Swissquote’s expertise as a provider of online trading services with digital asset security, in a bid to provide a safekeeping service for investment houses looking to gain exposure to the rapidly emerging asset class.
The brokerage firm already allows its clients to trade CFDs on 24 cryptocurrencies: Bitcoin, ethereum, litecoin, XRP, bitcoin cash, chainlink, ethereum classic, EOS, stellar, tezos, augur, ox, cardano, uniswap, aave, cosmos, algorand, filecoin, maker, compound, year.finance, dogecoin, polkadot and solana.
Swissquote’s crypto offering is going up against local players like Dukascopy which has its own cryptocurrency, allows clients to deposit and withdraw funds in digital coins, as well as enabling free internal crypto-transfers between users of mobile banking.