Lorien Gabel, co-founder and CEO of Figment, provides valuable perspectives on the evolving world of staking and its growing acceptance within Asia.
Founding Figment
Lorien Gabel’s impressive journey in the field of internet infrastructure spans several decades.
His experience includes roles with a variety of companies, from internet service providers to cloud security specialists.
In 2018, he co-founded Figment to capitalize on the nascent potential of proof-of-stake networks.
Since then, Figment has established itself as one of the leading independent staking providers worldwide, giving users the ability to stake their tokens independently of centralized exchanges or custodians.
Presently, Figment manages approximately $15 billion in assets and serves more than 500 institutional clients.
In an upcoming presentation at Consensus Hong Kong, Gabel plans to explore Figment’s growth in the Asian market, outline initiatives surrounding bitcoin staking, and detail the company’s methodical approach to assessing new blockchain networks for potential support.
Challenges and Strategies in Asia
Asia is a mosaic of diverse economies and regulatory landscapes; it cannot be considered a monolithic market.
Countries like Japan, South Korea, and Indonesia each have unique business environments and regulations.
Figment’s strategy prioritizes compliance, focusing on institutional clients over retail customers.
However, navigating the various regulations across countries poses significant complexities.
In contrast to the U.S., where the SEC and CFTC provide overarching guidance, Asian nations each operate under distinct regulatory frameworks.
Moreover, many Western companies stumble during expansion in Asia by neglecting vital factors like local workforce dynamics and customer preferences.
Having been born in Kuala Lumpur, Gabel has seen firsthand how North American firms can misjudge local market needs.
This insight led Figment to take a measured approach, launching its Singapore office with just three employees to better understand the landscape before pursuing broader expansion.
Education also remains a critical hurdle.
In many Asian markets, staking lacks a clear definition, often confusing it with DeFi lending.
To address this, Figment actively participates in conferences, media interviews, and client meetings, striving to clarify the nature and benefits of staking as an attractive alternative to riskier yield-generating options.
Institutional Interest and Token Support
Yes, a noticeable increase in institutional involvement is evident, particularly from banks and telecom companies.
While Figment has already attracted clients like Monex and B Capital, more traditional financial institutions are now making their move into the staking space.
Each market is defined by its exchanges and custodians, which leads Figment to form strategic partnerships rather than directly serving end-user clients.
Consequently, significant growth in institutional adoption is expected, mirroring the cautious beginnings of U.S. institutions before they expanded their staking protocols.
At Figment, a robust screening process determines which tokens to support for staking—a methodology refined over the past six years.
Given the limited number of new tokens that can be integrated each year, making careful choices is essential.
Last year saw the addition of approximately 12 to 13 new tokens, illustrating the complexity involved.
The evaluation starts with credibility checks to verify that a token is tied to a legitimate project led by a trustworthy team.
This initial vetting process resembles that of venture capital assessments.
After this, Figment engages with the project’s foundation and founders, evaluates custody options—which are crucial for institutional clients—and looks at the surrounding ecosystem.
Ultimately, when several strong candidates arise but capacity remains limited, decisions must be guided by informed intuition developed through experience.
Client preferences also influence these choices, and insights from the Asian market can be particularly impactful.
Sometimes, significant institutional partners may request support for projects that Figment had not previously considered, prompting a swift review process.
While staking may not always offer the highest returns in the cryptocurrency market, it provides a lower-risk pathway to earning yields without the complications of counterparty risks.
Figment focuses on risk-adjusted staking rewards, ensuring secure and compliant services since many clients prioritize stability and reliability over seeking maximum returns.
Notable trends currently shaping the staking landscape include advancements in liquid staking and re-staking, with EigenLayer at the forefront globally and making strides in Asia.
Bitcoin staking is also gaining traction, with initiatives like Babylon exploring its potential, though market demand remains uncertain.
Additionally, new blockchain projects with notable backing from the Asian market, such as BeraChain, are gradually building their user base in the region.
Figment is actively progressing in bitcoin staking while keeping a close eye on innovative staking models that arise from Asia.
Source: Coindesk
