TL;DR
- Anchorage Digital now supports Liquid Collective’s liquid-staked ETH (LsETH), allowing institutional clients to stake Ethereum and receive LsETH, representing staked ETH and accrued rewards.
- Institutions can earn Ethereum network rewards while retaining the flexibility to sell, transfer, or deploy their staked tokens, and can restake LsETH on EigenLayer for additional rewards.
- The announcement has been positively received, highlighting the growing interest in institutional-grade staking solutions and positioning Anchorage Digital as a key player in the Ethereum staking landscape.
Anchorage Digital, a leading U.S.-regulated digital asset platform, has announced its support for Liquid Collective’s liquid-staked ETH (LsETH). This new offering allows institutional clients to stake Ethereum (ETH) and receive LsETH, a liquid staking token that represents staked ETH along with accrued network rewards.
This development marks a significant milestone as Anchorage Digital becomes the first OCC-chartered bank in the United States to facilitate institutional liquid staking.
Key Features and Benefits
The integration of LsETH into Anchorage Digital’s platform provides several key benefits for institutional clients. By staking ETH through Anchorage Digital, institutions can earn Ethereum network rewards while retaining the flexibility to sell, transfer, or deploy their staked tokens.
This model offers a secure and efficient pathway for institutions to engage with Ethereum’s staking ecosystem, addressing both reward generation and liquidity needs. One of the standout features of this integration is the ability for clients to restake their LsETH on EigenLayer.
This process allows institutions to further enhance their staking strategies by participating in EigenLayer’s Active Validation Service (AVS) ecosystem. By restaking, clients can earn additional rewards, maximizing their returns while maintaining the security and operational rigor expected from a regulated platform like Anchorage Digital.
Market Reactions and Implications
The announcement has been met with positive reactions from the market, highlighting the growing interest in institutional-grade staking solutions. Nathan McCauley, CEO and co-founder of Anchorage Digital emphasized the company’s commitment to providing secure and flexible staking options for its clients.
“With LsETH, our clients gain a flexible staking option that allows them to access ETH staking rewards. Anchorage Digital is proud to enable institutional access to liquid staking through our secure, regulated offering,” McCauley stated.
Future Prospects
As the adoption of Ethereum staking continues to grow, Anchorage Digital’s support for LsETH positions it as a key player in the institutional staking landscape. The ability to stake, hold, and restake ETH on a single platform simplifies the process for institutional clients, making it easier for them to participate in the DeFi ecosystem.
