Telecommunications 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 staking service Ethereum 2.0 and DAO StakeWise to operate a staking pool that allows customers to participate in transaction validation without having to run a validator themselves. Deutsche Telekom is also involved in the governance of the decentralized autonomous organization (DAO) StakeWise.

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

Deutsche Telekom believes that liquid participation through its new service will attract customers because, like other services such as Lido, the offer helps customers save time and hassle of having to set up a validation node themselves. . Also, liquid staking is cheaper than regular Ethereum staking, which requires users to set up their own node and needs to stake at least 32 ETH, which at the current price is around $43,338 to participate in staking activity.

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

Why users prefer liquid staking

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

Liquid staking resolves such limitations by allowing users to stake any amount of Ethereum and effectively clear their ETH without the unnecessary requirements of transactions. As a result, Ethereum staking has gained more popularity as it is an alternative way for users to secure their bets and earn 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 additional yield on top of the standard rewards for staking or locking crypto tokens. a network. Binance, Lido Finance, and Kraken are also other institutions that manage major Ethereum staking pools.

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