TL;DR
- Galaxy Digital, a leader in digital assets, announced its partnership with Liquid Collective to deliver institutional-grade liquid staking services, starting with Ethereum and soon expanding to Solana.
- The SEC’s recent clarification that staking is not considered a security paves the way for this collaboration.
- Galaxy will provide OTC infrastructure for LsETH and accept it as collateral, reinforcing its focus on liquidity and capital efficiency for sophisticated investors.
The alliance between Galaxy Digital and Liquid Collective signals a firm commitment to the structured expansion of liquid staking. With a more favorable regulatory outlook in the United States, both firms are working to make staking mechanisms more accessible to financial institutions, without requiring long-term asset lock-up. The integration begins with Ethereum through the LsETH token and will move into the Solana ecosystem.
Institutional Liquidity Without Sacrificing Returns
LsETH enables ETH holders to earn staking rewards while keeping their assets liquid. This feature is critical for investment funds, qualified custodians, and financial entities seeking capital-efficient strategies.
Galaxy will provide OTC trading infrastructure and accept LsETH as collateral through its Galaxy Global Markets platform. Additionally, its asset management clients will gain direct access to staking products without needing to overhaul their operational structures. Integration with leading custodians, exchanges, and fund managers already connected to Liquid Collective’s network is also planned, further enhancing operational flow and lowering technical barriers for new institutions interested in adopting these innovative and highly functional assets.
This alignment is not only practical but offers a strategic gateway to staking participation for firms navigating regulatory constraints or conservative mandates. The demand for flexible, compliant, and yield-generating digital asset strategies is growing quickly among large institutions, and this partnership positions both companies to deliver long-term value.
Expansion Into New Blockchain Ecosystems
The partnership includes a phased expansion into Solana as a new liquid staking asset for institutional use. This opens the door to broader participation in other Proof of Stake (PoS) networks, maintaining flexible operations and robust risk standards.
Galaxy is also joining Liquid Collective’s active node operator set, alongside firms like Coinbase, Figment, and Blockdaemon. This ensures a high level of infrastructure reliability and institutional-grade performance.
With over $2.3 billion already staked and a global client base, Galaxy strengthens Liquid Collective’s value proposition, which has seen over 150% growth in ETH staked over the past quarter.
This collaboration comes as the liquid staking model reaches maturity, now representing nearly 40% of all staked ETH globally. The combination of interoperable solutions, regulatory alignment, and institutional access signals a concrete evolution toward broader financial adoption.
