On December 5, Anchorage Digital made headlines by becoming the first federally chartered bank in the United States to introduce support for liquid Ether (ETH) staking. This innovative step allows the cryptocurrency-focused bank to provide its clients with Liquid Collective’s Liquid Staked ETH (LsETH)—a unique token that reflects ETH that has been staked on the Ethereum blockchain.
Institutional Focus
Anchorage Digital aims to serve U.S. institutions, including venture capital firms, wealth management entities, and various blockchain projects. Through their Anchorage Digital accounts, these organizations can now participate in ETH staking directly and seamlessly.
This initiative sets Anchorage Digital apart as the first bank regulated by the Options Clearing Corporation to facilitate liquid staking in the U.S. market.
Market Trends
There’s an increasing interest among institutions for staking solutions, particularly as firms sponsoring exchange-traded funds (ETFs) grow hopeful about obtaining permission to include staking in U.S. ETH ETFs. Bernstein Research shared insights on December 2, suggesting that staking yields could soon find their way into U.S. ETH ETFs. They expressed optimism that a more crypto-friendly administration within the Securities and Exchange Commission might stimulate favorable outcomes for these staking yield approvals.
Liquid Collective’s Role
Liquid Collective specializes in developing liquid staking tokens (LSTs) targeted at institutional investors. Their focus on regulatory compliance and strong cybersecurity practices underscores their commitment to a secure investment environment. Their protocol enforces stringent Know Your Customer (KYC) and Anti-Money Laundering (AML) checks, utilizing trusted institutional node operators like Coinbase and Figment.
At present, LSTs boast a total value locked (TVL) of over $70 billion, with Lido leading the market with nearly $40 billion in TVL. In contrast, Liquid Collective is smaller in scale, holding about $430 million in TVL.
Source: Cointelegraph
