Boerse Stuttgart Digital, the crypto-focused arm of the Stuttgart Stock
As part of the development, global reinsurance company Munich Re has crafted an insurance product dedicated to reducing risks of slashing, the companies announced in a press release Tuesday. Slashing stands for penalizing validators in a proof-of-stake blockchain for violating network rules or malicious activity with suspended or lost staked tokens.
This is the latest example of well-established financial institutions building out their crypto chops as the digital asset industry matures and increasingly intertwines with traditional investment services.
Earlier this week, it was reported that Deutsche Bank, Germany’s largest lender, was working with Taurus on digital asset custody and tokenization, and HSBC, another global banking leader, was partnering with crypto custody firm Fireblocks. In the U.S., asset management giant Franklin Templeton joined the race for listing the first spot bitcoin ETF.
Boerse Stuttgart Digital is part of the Boerse Stuttgart Group, which says it’s Europe’s sixth-largest stock exchange group. The company earlier this year obtained a license to custody digital assets from German finance watchdog BaFin via its subsidiary Blocknox GmbH.
Expanding its custody service with staking allows Boerse Stuttgart Digital and its clients to earn rewards on the assets stored with the firm.
“We have noticed an increasing interest from institutional investors in the staking sector, eagerly anticipating the chance to participate, provided they have complete confidence in the security of the environment,” Dr. Oliver Vins, managing director of Boerse Stuttgart Digital, said in a statement.