German financial giants Boerse Stuttgart Digital and Munich Re Group have announced plans to introduce a fully-insured cryptocurrency staking service by 2024. The service will be aimed at institutional investors and is expected to redefine staking security standards across Europe.
Crypto staking is the process of locking up digital assets in order to support a blockchain network and earn rewards. It is a popular way to generate passive income from crypto assets, but it can also be risky, as there is a risk of losing your staked assets if the network is hacked or experiences technical difficulties.
The fully-insured crypto staking service offered by Boerse Stuttgart Digital and Munich Re Group will mitigate these risks by providing investors with insurance coverage for their staked assets. This will make crypto staking more attractive to institutional investors, who are typically more risk-averse than individual investors.
The launch of the fully-insured crypto staking service is expected to boost the adoption of crypto staking in Europe and make it a more mainstream investment product.