Despite Ether's current underperformance compared to Bitcoin, institutional interest in Ethereum staking is increasing, according to Kean Gilbert, head of institutional relations at the Lido Ecosystem Foundation. Recently, Komainu, a regulated digital asset custody provider, began supporting custody for Lido's Staked ETH, the largest staking token representing 27% of all staked Ether. This service is now available for institutions in Dubai and Jersey, offering a compliant way to access Ethereum staking yields at a time when many institutional investors are diversifying into cryptocurrencies.
Gilbert noted that many asset managers, custodians, and family offices are exploring staking strategies. Despite the struggles of Ether's price, institutional investors see great value in liquid staking tokens such as stETH, as they address issues related to capital lock-ups while ensuring compatibility with qualified custodians like Komainu and Fireblocks.
Lido's recent push toward institutional adoption is highlighted by the launch of Lido v3, which includes modular smart contracts aimed at helping institutions navigate regulatory compliance. This focus is crucial for asset managers and family offices bound by strict compliance and risk management frameworks, where limited access to regulated custodians has historically posed significant challenges. In contrast, crypto-native firms often manage assets more directly without involving third-party custodians.
Gilbert emphasized that staked Ethereum tokens are increasingly appealing to both traditional and crypto-native institutions. These tokens allow investors to earn Ethereum rewards without locking up capital for extensive periods. They also provide liquidity options across decentralized finance (DeFi) and centralized finance (CeFi) markets.
Gilbert noted that many asset managers, custodians, and family offices are exploring staking strategies. Despite the struggles of Ether's price, institutional investors see great value in liquid staking tokens such as stETH, as they address issues related to capital lock-ups while ensuring compatibility with qualified custodians like Komainu and Fireblocks.
Lido's recent push toward institutional adoption is highlighted by the launch of Lido v3, which includes modular smart contracts aimed at helping institutions navigate regulatory compliance. This focus is crucial for asset managers and family offices bound by strict compliance and risk management frameworks, where limited access to regulated custodians has historically posed significant challenges. In contrast, crypto-native firms often manage assets more directly without involving third-party custodians.
Gilbert emphasized that staked Ethereum tokens are increasingly appealing to both traditional and crypto-native institutions. These tokens allow investors to earn Ethereum rewards without locking up capital for extensive periods. They also provide liquidity options across decentralized finance (DeFi) and centralized finance (CeFi) markets.
