FINMA distinguishes the following variants and sub-variants of staking:Non-Custodial Staking: means that a customer maintains exclusive control over withdrawal keys.Custodial Staking: means that a customer transfers crypto asset to a third party.Custodial staking comprises the two variants: Direct Staking: Service provider operates the validator node and holds withdrawal keys. Staking Chain: Cryptoassets are passed through … Continued
FINMA’s Interpretation of Staking
FINMA regards staking as the “process of blocking native crypto assets at the staking address of a validator node in order to participate in a blockchain validation process based on a proof-of-stake consensus mechanism”.