Ethereum Staking Insurance: Munich Re Partners with Boerse Stuttgart

Ethereum is enjoying a bullish development that could attract more institutional investors to the second-largest cryptocurrency by market cap. The company has identified the risk of slashing that comes with the Proof of Stake consensus mechanism used on Ethereum. The same will insure investors of the total loss of the cryptocurrency that is staked.

Slashing is the penalization of validators who break the set-out rules on a Proof-of-Stake (PoS) blockchain like Ethereum. While this might be for malicious intent, this is not always the case.

German-based Boerse Stuttgart has identified that there is a growing interest in staking cryptocurrencies from institutional investors. Dr. Oliver Vins, Managing Director of Boerse Stuttgart Digital stated;

In recent years, the interest in cryptocurrencies has been growing. In part, this has come from the mass adoption witnessed as well as clear and fair regulation by governments. However, although institutional investors have been buying and holding cryptocurrencies, the interest in other blockchain-related products such as NFTs and DeFi has been slow. This is beginning to change with these investors taking an interest in NFTs and the DeFi market.

Related: Ethereum Falls Out of Favor with Institutions, Records $108M in Sales

Buy Ethereum (ETH) quickly and securely with PayPal, credit card or bank transfer at eToro. Visit Website <<Security has been a key concern for investors with a majority of products offering little assurance on their investment. By offering insurance in the staking sector, will attract new investors and boost the confidence of those already involved.

Why Institutional Investors Staking Ethereum is a Big Boost for ETH

Institutional investors staking Ethereum is a major boost for the world’s largest altcoin for several reasons. For starters, they will have to buy and hold a substantial amount of ETH staked for rewards. As the investors buy the digital asset, this will drive demand for it and raise prices higher.

In addition, staking ETH helps strengthen the security of the network, boosting the overall efficiency and stability of the Ethereum blockchain.

Institutional investors are popular for having ‘diamond hands’ making them unwavering in a bearish and bullish market. Getting involved in staking will lead to a healthier network and increasingly stable ETH prices. This is a positive sign of the long-term success of the Ethereum blockchain.

At the time of press, ETH is exchanging for around $1,600. The altcoin has lost nearly 67 percent of its value since reaching its all-time high of $4,800 achieved around 2 years ago.

Best Crypto Exchange for Everyone:

• Invest in Ethereum (ETH) and 70+ cryptocurrencies and 3,000+ other assets.
• 0% commission on stocks – buy in bulk or just a fraction from as little as $10.
• Copy top-performing traders in real time, automatically.
• Regulated by financial authorities including FAC and FINRA.

2.8 Million Users Get Started