According to reports, the partnership’s primary objective is to provide institutional investors with a secure and comprehensive all-in-one solution for staking, marking a groundbreaking development in the region’s staking landscape.
The new collaboration between Boerse Stuttgart Digital Custody and Munich Re Group enables institutional investors to explore the staking space with reduced barriers in the continually fluctuating realm of cryptocurrency.
New insurance solution to reduce losses from ‘slashing’ incidents
At the core of this innovative offering lies Munich Re Group’s staking insurance solution, created to mitigate slashing risks associated with Boerse Stuttgart Digital.
Slashing, a concern within the Ethereum blockchain’s Proof-of-Stake consensus mechanism, involves validators potentially losing their staked assets due to network rule violations, even in the absence of malicious intent.
Munich Re’s insurance solution offers coverage in the event of such slashing incidents, thus adding an indispensable layer of protection for investors.
Boerse Stuttgart Digital Custody, through its subsidiary blocknox GmbH, is improving its current custody solution to integrate this new staking service. This expansion aims to guarantee a high-quality and secure environment for investors looking to engage in staking activities.
Dr. Oliver Vins, Managing Director of Boerse Stuttgart Digital, stressed the importance of the growing interest among institutional investors in staking. He highlighted the importance of instilling confidence in the security of the staking environment, positioning Boerse Stuttgart Digital and Munich Re as trailblazers in jointly addressing this challenge.
Dr. Andre Knoerchen, Head of New Tech Underwriting at Munich Re, spoke about the significant growth potential of digital assets in the financial services sector. He noted that by combining the strengths of Boerse Stuttgart Digital and Munich Re, institutional adoption of digital assets can advance more rapidly and securely, creating a more robust ecosystem for all stakeholders.
