The Stuttgart Stock Exchange’s crypto-focused arm, Boerse Stuttgart Digital, is set to launch a cryptocurrency staking service with full insurance coverage next year, according to a company spokesperson who spoke to CoinDesk.
The service will be backed by a novel insurance product from Munich Re, a global reinsurance company, that aims to reduce the risks of slashing for validators in a proof-of-stake blockchain.
Slashing is a penalty mechanism that suspends or forfeits staked tokens if validators violate network rules or act maliciously.
This is another sign of how traditional financial institutions are expanding their crypto capabilities as the digital asset industry grows and integrates with conventional investment services.