Coinfeeds Daily → Lido & Taurus Bring Liquid Staking To Swiss Banks

Lido & Taurus Bring Liquid Staking To Swiss Banks

Published: Feb 15, 2024 | Last Updated: Mar 17, 2024
Howard Kane
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Taurus and Lido partnership brings liquid staking services to Swiss financial institutions, aligning with FINMA regulations.

Switzerland's financial sector is witnessing a significant evolution as Swiss banks begin to integrate Ethereum staking services into their offerings. This development is a result of a strategic partnership between Taurus, a Swiss cryptocurrency custody firm, and Lido, a decentralized autonomous organization (DAO) specializing in Ethereum staking solutions. The collaboration is set to redefine the traditional banking experience by merging it with the growing world of digital assets.

Bringing Ethereum Staking to Swiss Banks

With the partnership, Taurus is leveraging Lido's expertise to provide liquid Ethereum staking services to Swiss-based banks that are regulated by the Swiss Financial Market Supervisory Authority (FINMA). This move allows customers of these banks to earn income from holding and staking Ethereum tokens. The concept of liquid staking means that while customers' Ethereum is being staked, they still have access to liquidity, rather than their assets being locked up for an extended period.

Regulatory Clarity and Innovation

FINMA has played a pivotal role in this development by offering guidance on staking cryptocurrencies. The regulator has made it clear that banks must ensure that funds are available to clients at all times, even when staked. This regulatory clarity has helped to address uncertainties and could set a precedent for European banks to adopt similar liquid staking solutions. Taurus's recent Series B funding round, which saw investments from institutions like Deutsche Bank, underscores the financial industry's growing interest in digital asset services.

Impact on Traditional Banking

The Taurus-Lido partnership is not just a technological innovation but also a strategic move to bridge the gap between digital assets and conventional financial services. Swiss banks, such as St. Galler Kantonalbank, are already offering Bitcoin and Ether services, and this new initiative allows them to expand their digital asset services further. The ability for clients to earn rewards through staking Ethereum could attract a new customer base and provide existing clients with a more diverse range of investment options.

Implications

While the collaboration is currently focused on Swiss banks, the implications of this partnership could be far-reaching. The regulatory framework provided by FINMA, combined with the successful implementation of Ethereum staking services by Swiss banks, may influence other European jurisdictions to follow suit. Furthermore, if this model proves successful, it could lead to a wider adoption of Ethereum staking by banks globally, marking a new era in the integration of digital assets into traditional banking services.

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