Ethereum

Liquid Staked ETH

Bank

United

Collective

Anchorage Digital has become the first United States federally chartered bank to support liquid Ether (<a data-ct-non-breakable="null" href="https://cointelegraph.com/ethereum-price" rel="noopener noreferrer nofollow" target="_self" text="null" title="https://cointelegraph.com/ethereum-price">ETH</a>) staking, it said on Dec. 5.&nbsp;
The cryptocurrency bank has added support for Liquid Collective’s Liquid Staked ETH (LsETH), a liquid staking token (LST) representing ETH staked on the Ethereum blockchain, Anchorage Digital <a data-ct-non-breakable="null" href="https://www.anchorage.com/insights/anchorage-digital-adds-support-for-liquid-collectives-lseth" rel="noopener noreferrer nofollow" target="_blank" text="null" title="https://www.anchorage.com/insights/anchorage-digital-adds-support-for-liquid-collectives-lseth">said</a>.
It expects to service US institutions — including venture capital (VC) firms, wealth managers, and blockchain protocols — directly from their Anchorage Digital accounts, the bank explained.
“This integration makes Anchorage Digital Bank NA the first [Options Clearing Corporation]-chartered, US-regulated bank to support participation in liquid staking,” Anchorage Digital said.&nbsp;
<figure><img alt="Anchorage Digital to support liquid Ether staking" src="https://s3.cointelegraph.com/uploads/2024-12/01939867-9af3-76b6-aaa0-733eefe1993d" title="">
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 Source: <a data-ct-non-breakable="null" href="https://www.stakingrewards.com/" rel="noopener noreferrer nofollow" target="_blank" text="null" title="https://www.stakingrewards.com/">StakingRewards.com</a>
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Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/ethereum-funds-record-net-inflows-2024-coinshares" rel="noopener noreferrer nofollow" target="null" text="null" title="null">Ethereum funds see record net inflows of $2.2B in 2024</a>
<h2 id="staking-in-etfs">Staking in ETFs&nbsp;</h2>
Institutional staking solutions are in hot demand as exchange-traded fund (ETF) sponsors anticipate possible approval of staking in US ETH ETFs.&nbsp;
On Dec. 2, Bernstein Research said US ETH ETFs may <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/us-ether-etfs-staking-may-be-imminent-bernstein" rel="noopener noreferrer nofollow" target="null" text="null" title="null">soon feature staking yield</a>.
“We believe, under a new Trump 2.0 crypto-friendly [Securities and Exchange Commission], ETH staking yield will likely be approved,” Berstein said.
Staking involves locking up ETH as collateral with a validator on the Ethereum network. Stakers earn ETH payouts from network fees and other rewards but risk “slashing” — or losing ETH collateral — if the validator misbehaves.
Stakers on Ethereum earn approximately 3.5% annual percentage returns (APR) in ETH as of Dec. 5, <a data-ct-non-breakable="null" href="https://www.stakingrewards.com/" rel="noopener noreferrer nofollow" target="_blank" text="null" title="https://www.stakingrewards.com/">according</a> to StakingRewards.com.
Regulated digital asset custodians are proliferating in the US. They include Fireblocks, Coinbase Custody Trust, and Fidelity Digital Asset Services, among others.&nbsp;
In September, <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/anchorage-bitgo-joining-coinbase-custody-21shares-crypto-etfs" rel="noopener noreferrer nofollow" target="null" text="null" title="null">asset manager 21Shares added</a> Anchorage Digital Bank and BitGo as custodians for its spot cryptocurrency ETFs.
<h3 id="liquid-staking-tokens">Liquid staking tokens</h3>
Liquid Collective specializes in minting LSTs for institutions, prioritizing regulatory compliance and cybersecurity.
The LST protocol implements mandatory Know Your Customer (KYC) and Anti-Money Laundering (AML) checks and uses institutional node operators including Coinbase and Figment, according to Liquid Collective’s website.
LSTs command more than $70 billion in total value locked (TVL), <a data-ct-non-breakable="null" href="https://defillama.com/protocols/Liquid%20Staking" rel="noopener noreferrer nofollow" target="null" text="null" title="null">according </a>to DefiLlama. The most popular is Lido, which holds nearly $40 billion in TVL.
Liquid Collective is small by comparison, with approximately $430 million in TVL, per DefiLlama.
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/normie-degens-go-all-in-on-sports-fan-crypto-tokens-for-the-rewards/" rel="noopener noreferrer nofollow" target="null" text="null" title="https://cointelegraph.com/magazine/normie-degens-go-all-in-on-sports-fan-crypto-tokens-for-the-rewards/">‘Normie degens’ go all in on sports fan crypto tokens for the rewards</a>

Anchorage Digital to support liquid Ether staking

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