Swissquote offers Tezos (XTZ) staking service with yield of up to 5.7%
Swissquote has introduced a staking service for Tezos (XTZ), which enables users to earn dividends or interest on their XTZ holdings just for depositing and holding the token on the platform.
The Swiss online bank posted on its website the terms for staking Tezos (XTZ), an open-sourced blockchain protocol having the backing of more than 1,300 global validators, researchers, and developers. Swissquote clients can now stake their XTZ holdings directly with the bank and immediately start earning staking rewards of up to 5.7 percent annually. Notably, staking positions can be exited at any time as there is no minimum withdrawal period.
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 he expects the crypto exchange to be run and operational before June 2002. 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.
Swissquote adopts proof-of-stake networks
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.
The broker reported earlier solid financial results for 2021. The bank attributed the strong performance to a massive inflow of new clients and assets, leading to a rise in revenues to around 472 million Swiss francs from 317 million a year earlier.
A massive rise in revenue for Swissquote doubled its profits to CHF 223 million ($245 million) for the year. This figure was significantly higher from CHF 105.6 million it reported in 2020. In 2021, net new money inflow was 9.6 billion francs, taking client assets to a record high 55 billion francs as of December 31.