Key Takeaways:
- First in the US: Anchorage Digital becomes the first federally chartered US bank to offer liquid Ether staking.
- Liquid Staking Integration: It supports Liquid Collective’s Liquid Staked ETH (LsETH), allowing staked ETH to remain liquid.
- Institutional Access: Service targets U.S.-based institutions, including VC firms, wealth managers, and blockchain protocols.
Anchorage Digital has become the first federally chartered U.S. bank to support liquid Ether (ETH) staking, marking a significant milestone in institutional crypto services.
Announced on December 5, the bank now offers Liquid Staked ETH (LsETH) through the Liquid Collective platform, enabling institutions like venture capital firms and wealth managers to stake ETH via Anchorage accounts.
We’re excited to announce that Anchorage Digital Bank NA now supports Liquid Staked ETH (LsETH), making us the first U.S. federally chartered bank to support participation in liquid staking. This integration with @liquid_col provides institutions with a secure and flexible… pic.twitter.com/SA5xv1TWH5
— Anchorage Digital (@Anchorage) December 5, 2024
This move positions Anchorage as the first U.S.-regulated bank to facilitate liquid staking.
Liquid staking allows users to stake ETH while retaining liquidity through tokens that represent their staked assets.
Ethereum staking yields an approximate 3.5% annual return but comes with risks such as “slashing” for validator misconduct.
Institutional adoption of staking is growing, fueled by potential regulatory developments, including the inclusion of staking yields in U.S.-based ETH ETFs.
Regulated custodians like Anchorage, Fireblocks, and Coinbase Custody are gaining prominence to support institutional staking needs.
Liquid staking tokens (LSTs) have surpassed $70 billion in total value locked, with Lido leading the market.
Liquid Collective focuses on compliance, integrating Know Your Customer (KYC) and Anti-Money Laundering (AML) safeguards.
About The Author
Adam Morris, the co-founder of Crypto Head and a respected crypto expert, offers insightful commentary and analysis on cryptocurrency, NFTs, and the evolving digital landscape.
His extensive experience and features in top-tier publications like Forbes and CNN underscore his deep understanding of the crypto world and its future potential.
Check Adam out on: