Boerse Stuttgart Digital, the cryptocurrency arm of Germany’s Stuttgart Stock Exchange, plans to launch a fully insured oinbase-make-crypto-moves">crypto staking service in 2024 according to a company spokesperson.
To help reduce risks around slashing, global reinsurance firm Munich Re has created an insurance product specifically for the offering. Slashing refers to validators on proof-of-stake blockchains being penalized for misconduct by losing staked tokens.
This marks the latest push into crypto services by major traditional finance players as digital assets continue to gain mainstream traction.
Earlier this week, reports emerged about Deutsche Bank exploring digital asset custody and tokenization with Taurus, and HSBC partnering with crypto custodian Fireblocks. In the US, asset manager Franklin Templeton is seeking approval for a spot bitcoin ETF.
Boerse Stuttgart Digital is part of the Boerse Stuttgart Group, claiming to be Europe’s sixth largest stock exchange. Earlier in 2022, it obtained a license from German regulator BaFin to custody digital assets via its subsidiary Blocknox.
Adding staking to its custody offering allows Boerse Stuttgart Digital and its clients to earn rewards on stored assets.
“We have noticed increasing interest from institutional investors in staking, if done securely,” said Dr. Oliver Vins, Managing Director at Boerse Stuttgart Digital.
The move demonstrates the growing convergence between crypto and mainstream finance as institutional adoption accelerates. With proper risk management, staking offers another avenue for traditional players to engage with digital assets.
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