As a seasoned crypto investor with a keen eye for regulatory compliance and institutional-grade solutions, this latest development by Anchorage Digital is nothing short of exciting. Having navigated through the wild west days of cryptocurrency, I can attest to the importance of having robust, regulated platforms that cater to institutional investors. The ability to participate in liquid staking directly from my Anchorage Digital account is a game-changer, especially considering the potential approval of staking in US ETH ETFs.
On December 5th, Anchorage Digital announced that it is now the initial U.S. federally-chartered bank offering support for staking liquid Ether (ETH).
Anchorage Digital recently announced that they’ve integrated support for Liquid Staked ETH (LsETH), a type of liquid staking token tied to ETH staked on the Ethereum network, called Liquid Collective’s LsETH.
The bank plans to offer its services directly to U.S. institutions such as venture capital firms, wealth managers, and blockchain protocols right from their Anchorage Digital accounts, according to their explanation.
Anchorage Digital Bank NA has become the initial bank authorized by the Options Clearing Corporation and regulated in the U.S., to facilitate involvement in liquid staking.” (Anchorage Digital’s statement)
Staking in ETFs
There’s a high demand for institutional staking solutions, as the creators of Exchange-Traded Funds (ETFs) are preparing for potential approval of staking within U.S.-based Ethereum ETFs.
On Dec. 2, Bernstein Research said US ETH ETFs may soon feature staking yield.
According to Berstein’s statement, it is anticipated that with the introduction of a revamped SEC under a potential Trump administration, there is a good chance that Ethereum (ETH) staking rewards could receive approval.
Participating in staking means securing Ether (ETH) as security with a validator within the Ethereum blockchain. By doing so, stakers receive ETH returns from transaction fees and other benefits, but there’s a chance they could face penalties, known as “slashing,” if the validator acts improperly or irresponsibly, potentially leading to the loss of their collateral ETH.
As per StakingRewards.com, individuals who stake on Ethereum are currently earning around a 3.5% yearly return, expressed in Ether (ETH), as of December 5.
Increasingly, secure storage services for digital assets, such as Fireblocks, Coinbase’s Trust, Fidelity Digital Asset Services, and more, are becoming common in the United States.
21Shares appointed Anchorage Digital Bank and BitGo as custodians for their actively managed crypto ETFs in September.
Liquid staking tokens
The Liquid Collective excels at creating LST tokens specifically for organizations, with a strong emphasis on adherence to regulations and robust cybersecurity measures.
On the Liquid Collective’s website, it is stated that the LST protocol carries out obligatory Know Your Customer (KYC) and Anti-Money Laundering (AML) verifications. Additionally, institutional node operators such as Coinbase and Figment are part of its operations.
Approximately $70 billion in total value is held across various LST platforms as per DefiLlama’s latest figures, with Lido being the most widely used platform, accounting for close to $40 billion of this amount.
Liquid Collective is small by comparison, with approximately $430 million in TVL, per DefiLlama.
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2024-12-05 23:35