Anchorage to Launch Ethereum Staking for Institutions

Anchorage to Launch Ethereum Staking for Institutions

Anchorage will launch Ethereum staking for institutionals

Regulated crypto bank Anchorage announced the launch of an Ethereum (ETH) staking service for institutional investors following the network's transition to the Proof-of-Stake (PoS) consensus algorithm.

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The company has begun registering future customers of the service. 

Presumably, the «merger» [The Merge] Ethereum developers will hold in August. In June, the team switched the Ropsten testnet to PoS.

The Merge: what to expect from Ethereum's biggest update

Once The Merge is implemented on the mainnet, users will be able to deposit cryptocurrencies for validation. The reward will consist of two parts: a block reward and a transaction priority fee that miners are currently receiving. Ethereum developer Justin Drake estimates that the rate will be 8%-9%, according to CoinDesk.

According to Anchorage President Diogo Monica, institutional investors used to be «very uncomfortable to participate in staking». The transition of such a large network to the PoS algorithm and the support of the bank will effectively legitimize the solution as an alternative to Proof-of-Work, he said.

«One of our large holdings is about to go through an interesting transition, during which you will be highly motivated by creating profitable stakes games to actually stake your assets. So there is a slightly crazy rush to get a partner who can actually stake,” said Monica.

In his opinion, the current market downturn has not affected the use of the Ethereum network. There are use cases that are independent of the price of cryptocurrencies, such as settlements and payments in stablecoins, which are expanding thanks to fintech, corporations and large companies, Monica noted.

«These types of use cases are accelerated in a bear market, or at least unaffected by it», he added.

As a reminder, Anchorage raised $350 million in December 2021 during the Series D funding round. The valuation of the crypto bank reached $3 billion.

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