Originally published on: December 05, 2024
Anchorage Digital Bank has achieved a significant milestone by becoming the first federally chartered bank in the United States to offer support for liquid Ether (ETH) staking. This groundbreaking announcement was made on December 5th, marking a pivotal moment in the world of cryptocurrency banking.
The cryptocurrency bank has integrated support for Liquid Collective’s Liquid Staked ETH (LsETH), a liquid staking token (LST) that represents ETH staked on the Ethereum blockchain. This move will allow US institutions such as venture capital firms, wealth managers, and blockchain protocols to access liquid staking services directly from their Anchorage Digital accounts.
By facilitating participation in liquid staking, Anchorage Digital Bank has solidified its position as the first US-regulated bank to support this innovative staking method. This development is a significant step forward for institutional staking solutions, especially as the approval of staking in US ETH ETFs looms on the horizon.
Institutional investors are eagerly awaiting the potential approval of staking in US ETH ETFs, with Bernstein Research predicting that staking yield may soon be a feature of these ETFs. With Ethereum stakers currently earning around 3.5% APR in ETH rewards, the demand for regulated digital asset custodians is expected to grow exponentially.
Liquid Collective, the pioneer in minting LSTs for institutions, prioritizes regulatory compliance and cybersecurity. With over $70 billion in total value locked in Liquid Staked Tokens, the industry is actively embracing liquid staking as a viable investment strategy.
As the cryptocurrency landscape continues to evolve, Anchorage Digital Bank’s innovative approach to liquid Ether staking sets a new standard for the industry. Stay informed about the latest developments in DeFi and cryptocurrency by subscribing to our Finance Redefined newsletter. Join us every Friday for insightful analysis, breaking news, and expert financial advice to help you navigate this dynamic market with confidence.