According to CoinDesk, Boerse Stuttgart Digital, the crypto-focused subsidiary of the Stuttgart Stock Exchange, plans to launch a fully insured cryptocurrency staking service in 2023. Munich Re, a global reinsurance company, has developed an insurance product specifically designed to reduce the risks of slashing, a penalty imposed on validators in a proof-of-stake blockchain for violating network rules or engaging in malicious activity, resulting in suspended or lost staked tokens.
This move is another example of established financial institutions expanding their crypto capabilities as the digital asset industry matures and increasingly intersects with traditional investment services. Deutsche Bank, Germany's largest lender, is reportedly collaborating with Taurus on digital asset custody and tokenization, while HSBC is partnering with crypto custody firm Fireblocks. In the United States, asset management giant Franklin Templeton is competing to list the first spot bitcoin ETF.
Boerse Stuttgart Digital is part of the Boerse Stuttgart Group, which claims to be Europe's sixth-largest stock exchange group. Earlier this year, the company obtained a license to custody digital assets from German finance watchdog BaFin through its subsidiary Blocknox GmbH. By extending its custody service to include staking, Boerse Stuttgart Digital and its clients can earn rewards on the assets stored with the firm. Dr. Oliver Vins, managing director of Boerse Stuttgart Digital, noted an increasing interest from institutional investors in the staking sector, provided they have complete confidence in the security of the environment.