Crypto staking: Germany teaches its Western friends a lesson

While the United States, through the SEC and CFTC, grapples with regulatory challenges in the cryptocurrency market, Germany is forging ahead. Currently, numerous German banks have already stepped into the exciting world of cryptocurrencies, and some local financial institutions believe it’s time to embark on this adventure. This includes the Stuttgart Stock Exchange, which plans to launch crypto staking next year.

In brief:

• The Stuttgart Stock Exchange, through its crypto branch Boerse Stuttgart Digital, will introduce a cryptocurrency staking service in 2024;
• Thanks to a partnership with Munich Re, this product will come with robust insurance coverage.

Crypto Staking Service Coming to Germany

Like Deutsche Bank and DWS, several German financial institutions have started embracing cryptocurrencies due to their popularity. Our confrères have even mentioned the existence of around 1,200 German banks ready to deploy bitcoin trading services on wpNex, the blockchain platform of Deutsche WertpapierService Bank AG (dwpbank).

German financial superpower, Boerse Stuttgart recently obtained its license to enable the CUSTODY OF DIGITAL ASSETS beginning in 2024. “We have noticed an increasing interest from institutional investors in the staking sector, eagerly anticipating the chance to participate,… pic.twitter.com/NL57LnS6Gq

— Digital Asset News (@NewsAsset) September 16, 2023

In the columns of Bitcoinist, we have learned that Boerse Stuttgart Digital, the crypto division of the Stuttgart Stock Exchange, intends to offer a cryptocurrency staking service in 2024.

What sets this Stuttgart Stock Exchange innovation apart? Its high level of security, among other things. Indeed, Boerse Stuttgart Digital’s crypto staking service will include insurance coverage. This ensures the trading activities of clients in Germany, as well as their digital assets.

In the world of cryptocurrencies, currency volatility, such as that of bitcoin or ether, crypto hacking, and the collapse of exchange institutions, lead investors to hesitate or be less confident.

For this cryptocurrency staking service project, the Stuttgart Stock Exchange has partnered with insurance giant Munich Re Group. This partnership will undoubtedly facilitate the creation of an ideally insured product against certain incidents like slashing in blockchain networks.

“We are delighted to anchor the partnership with Munich Re […] as it lays the groundwork for providing a highly secure and insured staking solution to institutional investors across Europe,” commented Olivier Vins, CEO of Boerse Stuttgart Digital.

Crypto, Blockchain, and Insurance: The Perfect Combo

Mixing insurance products with cryptocurrencies is a 100% German invention that savvy crypto traders won’t want to miss. Cryptos already have blockchain technology as their foundation, guaranteeing a host of advantages: transparency, immutability, security, traceability, and trust.

Börse Stuttgart Digital and Munich Re have joined forces to develop cryptocurrency staking products backed by insurance. By establishing a secure environment, these two financial giants will enhance the confidence of crypto validators, stakeholders, and investors.

It’s worth noting that Boerse Stuttgart Digital Custody, currently managed by blocknox GmbH, already offers a range of digital asset custody services. With the introduction of a cryptocurrency staking option in its ecosystem, investors will be able to diversify their income-generating activities.