Anchorage Digital Integrates Puffer to Provide Institutional ETH Reset
Anchorage Digital has teamed up with Puffer Finance to enable institutional clients to recover Ethereum liquidity through the custody platform.
As of Thursday's announcement, institutions will be able to integrate Ether with Anchorage and receive Puffer's liquid restaking token, pufETH, directly into their accounts. The token represents a redistributed ETH (ETH) space that can be transferred or distributed on supported onchain applications, which will continue to earn rewards.
Institutions using the platform can participate in re-staking without running validators or managing staking infrastructure themselves.
The merger allows clients to access Puffer's restoration protocol while keeping funds within Anchorage's conservation and management framework.
Anchorage said the merger is part of a broader effort to expand the reach of institutional onchain services across the platform, including staking, resourcing, management and settlement.
Anchorage Digital is a San Francisco-headquartered crypto holding company that operates the first federally chartered crypto bank in the United States.
In January, the company was reported to be seeking $200 million to $400 million in new funding as it explores a possible initial public offering next year.
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Liquidity restocking extends across the entire Ethereum ecosystem
Re-staking has emerged as a new layer of activity in proof-of-stake networks like Ether, allowing pre-reserved tokens to be reused to maintain more decentralized services while generating more rewards.
In liquidity recovery systems, the stored Ether is represented by a token that can be reused by redesigning protocols to make more decentralized services safer.
Much of the restaking ecosystem is built around EigenLayer, a protocol launched by Eigen Labs that allows staked Ether or liquid staking tokens to access additional onchain services beyond the Ethereum network.
Over the past few years, liquidity has grown into a multi-billion dollar sector within the Ethereum ecosystem. According to data from Defilama, protocols that offer liquid restoration account for about $7.2 billion in total value locked (TVL).
The sector is followed by ether.fi at around $5.6 billion in TVL, followed by Kelp DAO at around $1 billion and Renzo at around $217 million. Puffer Finance, an Anchorage-based digital integrator, currently manages around $62 million in revalued Ether.
Ethereum treasury companies are increasingly leveraging these strategies to generate revenue from their Ether holdings. In October, Sharplink Gaming said it planned to deploy $200 million worth of ether from the company's treasury via ether.fi and EigenCloud on Linea.
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