Ethereum

Liquid Staked ETH

Bank

Collective

Anchorage Digital has set a notable precedent by becoming the pioneer among U.S. federally chartered banks to facilitate liquid <a href="https://yellow.com/asset/eth">Ether</a> staking. On December 5, the cryptocurrency bank revealed its support for Liquid Collective's Liquid Staked ETH (LsETH), a liquid staking token (LST) that signifies staked ETH on the Ethereum blockchain. 
The bank <a href="https://cointelegraph.com/news/anchorage-digital-support-liquid-ether-staking">aims</a> to serve U.S. institutions, including venture capital firms, wealth managers, and blockchain protocols, directly via their Anchorage Digital accounts. With this integration, Anchorage Digital Bank NA distinguishes itself as the inaugural Options Clearing Corporation-chartered, U.S.-regulated bank enabling participation in liquid staking. 
The demand for institutional staking solutions is intensifying as exchange-traded fund (ETF) sponsors look forward to the potential endorsement of staking within U.S. ETH ETFs. On December 2, Bernstein Research speculated that staking yields might soon become a feature of U.S. ETH ETFs. 
They suggest that under a hypothetical Trump 2.0, crypto-friendly Securities and Exchange Commission, ETH staking yields are likely to receive approval. 
Staking involves securing ETH as collateral with a network validator on Ethereum. While stakers earn ETH payouts from network fees and rewards, they face the risk of "slashing," a penalty that results in loss of ETH collateral for validator misconduct. As of December 5, stakers on Ethereum can earn about 3.5% annual percentage returns (APR) in ETH, according to StakingRewards.com. 
The U.S. is witnessing a surge in regulated digital asset custodians, with Fireblocks, Coinbase Custody Trust, and Fidelity Digital Asset Services leading the charge. In September, Anchorage Digital Bank and BitGo were incorporated as custodians by asset manager 21Shares for its spot cryptocurrency ETFs. 
Liquid Collective, a specialist in minting LSTs for institutional use, emphasizes regulatory compliance and cybersecurity. Its protocol mandates Know Your Customer (KYC) and Anti-Money Laundering (AML) checks, deploying institutional node operators such as Coinbase and Figment. As reported by DefiLlama, LSTs command a total value locked (TVL) exceeding $70 billion. Among them, Lido is the most prominent, holding nearly $40 billion in TVL. In stark contrast, Liquid Collective maintains a TVL of approximately $430 million.

Anchorage Digital Leads U.S. Banks in Supporting Liquid Ether Staking

Yellow News

Other articles published on Dec 6, 2024

Solana-Based Meme Coin Factory Banned in UK

Bitcoin Drops To $92,000: BlackRock And The Whales Take Advantage

SocialTensor Advances Decentralized AI with NicheTensor API

How high can Jasmy price rise by December 31?

Peanut The Squirrel Price Prediction: PNUT Surges 16%, But Investors Flock To This Cat-Themed Mem...

MicroStrategy Acquires Additional $1.5B Bitcoin, Expands Holdings to 402,100

Join our free newsletter for daily crypto updates!