Anchorage to support digital liquid ether stand
Anchorage Digital has become the first US federally chartered bank to support liquid ether (ETH) staking, it said on December 5.
The cryptocurrency bank has added support for Liquid Collective's Liquid Staked ETH (LsETH), which stands for ETH held on the Ethereum blockchain, Anchorage Digital said.
U.S. institutions — including venture capital (VC) firms, wealth managers and blockchain protocols — are expected to be served directly from their Anchorage digital accounts, the bank said.
“This merger makes Anchorage Digital Bank NA's first [Options Clearing Corporation]- A chartered, US-regulated bank to support participation in liquidity,” Anchorage Digital said.
Source: StakingRewards.com
Related: Ethereum Funds See Record Net Inflows of $2.2B in 2024
Investing in ETFs
Institutional stock solutions are in high demand as exchange-traded fund (ETF) sponsors await the approval of stakes in US ETH ETFs.
On December 2nd, Bernstein Research reported that US ETH ETFs may soon show higher yields.
“We believe in the new Trump 2.0 crypto-friendly foundation. [Securities and Exchange Commission]ETH stock production will be approved,” Berstein said.
Staking involves locking ETH as a stake with a validator on the Ethereum network. Stakeholders earn ETH payments from network fees and other rewards, but can “cut” – or lose their ETH guarantee – if the validator misbehaves.
As of Dec. 5, shares in Ethereum will earn roughly 3.5% annual percentage returns (APR), according 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.
In September, asset manager 21Shares added Anchorage Digital Bank and BitGo to its portfolio of cryptocurrency ETFs.
Liquid tokens
Liquid Collective specializes in developing LSTs for institutions, prioritizing regulatory compliance and cyber security.
The LST protocol implements Know Your Customer (KYC) and Anti-Money Laundering (AML) checks and uses institutional node operators, including Coinbase and Fayment, according to Liquid Collective's website.
LSTs command more than $70 billion in total value locked (TVL), according to Defillama. The most famous is the nearly $40 billion Lido by TVL.
Liquid Collective is relatively small, with a TVL of roughly $430 million, per Defilla.
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