Lido launched an institutional-grade liquid-level solution
Lido Finance has introduced Lido Institutional, an institutional-grade liquid payment solution for large clients such as custodians, asset managers and exchanges.
Lido Institute is a middleware solution that “combines the reliability and security necessary for enterprise-class stocks with the liquidity and utility required by a variety of institutional strategies,” Lido said in a post on X.
Lido Institute has a client base.
Lido is the largest liquidity protocol, controlling more than 28.5% of all stored Ether (ETH). That share is down from 32 percent in December, but it already represents a large institutional client base, the decentralized autonomous organization (DAO) noted in its announcement:
“Lido already stands out as the primary choice for many institutions looking to participate in Ethereum stock.”
Lido has been working since I launched the new service. It partnered with infrastructure provider Taurus in February. Lido and infrastructure provider FireBlocks announced their participation at the EthCC event in July. Lido names its institutional firms as security solutions on its website.
Related: Lido, Rocket Pool Team Members Debate Decentralization
In the year Launched in 2020, Lido is a liquid container solution managed by Lido DAO. It allows users to share any amount of ETH as part of a pool and receive rewards instead of having to bring a minimum of 32 ETH to redeem directly on the network. At the same time, users can use their Lido Staked ETH (STETH) for other activities. Lido pays a 10% fee to settle rewards, which is split between the node operators and the DAO treasury.
Stakes has confirmed the threat of US regulation
The U.S. Securities and Exchange Commission said Lido and rival Rocket Pool were selling unregistered securities in a June complaint against Consensys. According to the SEC:
“Investors will rationally invest ETH in the joint venture with the profits from Lido and Rocket Pool's management efforts.”
“However, neither Lido nor Rocket Pool have submitted a registration statement to the commission for the offer and sale of these investment contracts,” he continued.
The SEC used Consensys' MetaMask platform as an intermediary in unregistered securities transactions, facilitating transactions through Lido and Rocket Pool. The SEC has not taken direct action against Lido or Rocket Pool, but its position is clear.
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