Germany’s Deutsche Telekom Rolls Out Ethereum Validator Node, Staking Support

Telecom giant Deutsche Telekom, the parent company of T-Mobile, announced on Thursday the launch of its Ethereum staking services.

The German company stated that its T-Systems Multimedia Solutions (MMS) division is working with a liquid Ethereum 2.0 staking service and DAO StakeWise to operate a staking pool that allows customers to participate in validating transactions without having to run a validator themselves. Deutsche Telekom is also participating in the governance of the StakeWise decentral autonomous organization (DAO).

In a statement, the Head of Blockchain Solutions Center at T-Systems MMS, Dirk Röder, said, “As a node operator, our entry into liquid staking and the close collaboration with a DAO is a novelty for Deutsche Telekom.”

Deutsche Telekom believes liquid staking through its new service will attract customers because, like other such services such as Lido, the offering helps customers save time and the hassle of having to set up a validator node for themselves. Furthermore, liquid staking is cheaper than ordinary Ethereum staking which requires users to set up their own node and they need to stake at least 32 ETHs, which at today’s price is around $43,338 in order to participate in staking activity.

Deutsche Telekom has been actively participating in the crypto landscape for some time. Last year, the company entered into the crypto space by investing in Celo, a San Francisco-based blockchain startup that offers cryptocurrency on mobile services.

Last month, T-Mobile, a subsidiary of Deutsche Telekom, partnered with Nova Labs to launch a new 5G wireless service called Helium Mobile that aims to allow users to earn rewards in crypto tokens for sharing data.

Why Users Are Preferring Liquid Staking

Ethereum staking is the process in which users lock up their funds to help validate blocks and secure the Ethereum network. In return, they receive staking rewards in the form of more ETH. However, many limitations still hinder users from participating in the staking process. For example, investors are required to deposit a minimum of 32 ETH collateral (worth approximately $43,338) to become a validator. This is quite expensive for ordinary investors.

Liquid staking resolves such limitations as it allows users to stake any amount of Ethereum and to effectively unstake their ETH without the unnecessary requirements of transactions. As a result, Ethereum staking has been gaining more popularity as it is an alternative way in which users are locking up their stakes and earning rewards.

Late last month, Coinbase launched its liquid staking token, called Coinbase Wrapped Staked ETH (cbETH), ahead of the Ethereum blockchain’s Merge – a liquid staking service that allows users to generate extra yield on top of standard rewards for staking or locking crypto tokens in a network. Binance, Lido Finance, and Kraken are also other institutions that run major Ethereum staking pools.

Image source: Shutterstock


Tagged : / / / /

Telecom Giant Integrates With Polkadot Blockchain Ecosystem, Purchases DOT Tokens

German telecommunications giant Deutsche Telekom is teaming up with Polkadot (DOT) and investing in the interoperability blockchain’s ecosystem by purchasing DOT tokens.

Telekom recently announced subsidiary company T-Systems MMS plans to use Telekom’s infrastructure to participate in Polkadot’s public blockchain network as a validator.

The Polkadot network aims to connect multiple blockchains into one unified network, allowing users on different blockchains to send and receive transfers of any type of data or asset. The DOT token allows holders to participate in network governance, staking and bonding.

DOT is currently trading at $30.11, up more than 6% from where it was priced one month ago.

Dr. Andreas Dittrich, head of the Blockchain Solutions Center at T-Systems MMS, says they believe in Polkadot’s vision.

“As Deutsche Telekom, we have always supported the collaboration of people and companies, now also with decentralized technologies.

Polkadot is a heterogeneous, multi-chain network allowing various blockchains of different characteristics to perform arbitrary, cross-chain communication under shared security.”

It’s not Telekom’s first foray into the crypto world. In June, the telecommunications giant and Andreesen Horowitz announced they had partnered to stake CELO tokens on the public blockchain network of global payments infrastructure platform Celo.

Check Price Action

Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix



Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/Guliveris


Tagged : / / / / / /

Deutsche Telekom to store CELO tokens on Coinbase Custody

Coinbase Custody, the crypto custodial solution offered by United States exchange giant Coinbase has been chosen by Deutsche Telekom to store its Celo (CELO) tokens.

According to a release issued on Monday, the telecoms giant identified the robust security protocols offered by Coinbase Custody as a major reason for choosing the service.

Deutsche Telekom invested in Celo back in April, becoming the first telecom member of the Celo Alliance for Prosperity. Apart from making a “significant purchase” of CELO tokens, Deutsche Telekom’s T-Systems MMS subsidiary also became a validator on the mobile decentralized finance Celo network.

As previously reported by Cointelegraph, United States-based venture capital behemoth Andreessen Horowitz (a16z) delegated its Celo assets to T-Systems MMS. At the time, Katie Haun, general partner at a16z, stated that both companies had similar visions about the ability of the Celo project to disrupt the global payment sector.

Deutsche Telekom’s selection of Coinbase Custody comes after the latter secured approval from Germany’s Federal Financial Supervisory Authority back in June. Indeed, Coinbase became the first crypto exchange to be granted such a license in the country following the news.

Related: Cryptocurrency custody gives commercial banks a foothold in the market

Custody has always been a focal point of the discussion surrounding broad-based institutional adoption of crypto. Legal requirements in many jurisdictions often mandate regulated entities to store assets with recognized custodians.

Banks and other financial institutions are increasingly making their first forays into the crypto space by leveraging their standing with regulators to offer cryptocurrency. This trend is in addition to the custodial services offered by regulated exchanges like Coinbase and Gemini.

Fintechs and tech companies in general as also making forays into the crypto custody space. Back in June, Twitter and Square CEO Jack Dorsey revealed that the latter was developing a Bitcoin (BTC) hardware wallet.

Indeed, given the maturing crypto custody space, attention is beginning to shift to onboarding major institutional players like retirement funds and sovereign wealth management funds.