Direct Stacking

FINMA’s current legal assessment is that in case of the bankruptcy of a supervised entity, staked
crypto assets should be segregated from the bankruptcy estate and returned to the custody account
holder provided that the following conditions are met:

  • the customer has given a specific instruction about the type and number of crypto assets to be staked;
  • appropriate steps have been taken to ensure that the crypto assets placed on a particular validator address, and a particular withdrawal address after unstaking, can be allocated unambiguously to the customer;
  • the customer is informed transparently and clearly of all risks (including slashing, lock-up periods and risks relating to the legal uncertainties in the event of bankruptcy);
  • appropriate steps are taken to mitigate the operational risks of operating a validator node (including business continuity management), in order to avoid slashing and other penalties; and
  • a Digital Assets Resolution Package (DARP) is prepared to ensure adequate risk management
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