Fireblocks Introduces Crypto Staking for Institutional Investors

Fireblocks Introduces Crypto Staking for Institutional Investors; Ethereum, Tezos and Polkadot

Fireblocks wants to help institutional investors access crypto staking opportunities. The company’s institutional focus comes at a time when interest in crypto is high.

Digital asset security platform Fireblocks has been working over the past year to improve institutional access to cryptocurrencies. Following the success in decentralized finance (DeFi) and more, the company is now turning its sights to the burgeoning staking scene.

Staking is for Everyone

Fireblocks plans to support hosted proof-of-stake (PoS) services for Ethereum 2.0, Tezos, and Polkadot, as it opens up token staking to its institutional client base.

Fireblocks has over 165 clients, which includes heavyweight crypto lenders Salt, Celsius, and UK-based Fintech firm Revolut. The crypto custodian is partnering with popular staking providers Staked and Blockdaemon to pull this off.

Company chief executive Michael Shaulov confirmed that the move was largely due to increased investor demand.

As he pointed out, most of Fireblock’s customers hold Bitcoin, while a small minority hold altcoins. That small minority is split in assets such as XTZ, DOT, and ETH, which total about $1 billion.

Institutional investors with idle funds, should expect between 5 and 15 percent in yields annually if they lock up their funds on the platform.

Fireblocks’ customers will maintain custody of their funds in their MPC-based wallets. From there, they can monitor their performance on Staked and Blockdaemon.

Data from Staking Rewards shows that the two are ranked first and sixth, respectively, on the list of crypto assets by staked value. With Polkadot staking in particularly high demand, Fireblocks appears to be in an excellent position to land its desired institutional clients.

Staking on Ethereum 2.0 is also on the rise. Industry news sources recently confirmed that Ethereum 2.0 staking on top crypto exchange Kraken had surpassed the billion-dollar mark.

Fireblocks’ Encompassing Institutional Crypto Play

Fireblocks’ cryptocurrency staking service is the latest in a flurry of efforts to drive institutional crypto investment.

Last June, the firm created an open network called Secure Asset Transfer Network, for institutions to connect, trade, settle and transfer crypto on-chain. The network launched with over 55 institutions and 26 exchanges. Participants included brokers, liquidity providers, asset custodians, and market makers. Shaulov said at the time,

“The launch of the Fireblocks Network makes it possible for users to store and transfer assets across the entire institutional ecosystem and removes the need for any middle-men. We’re redefining on-chain settlement processes by adding an unprecedented layer of security and efficiency, preserving the decentralized nature of blockchain, and allowing it to operate at the institutional level.”

The Asset Transfer Network was built on its multiparty computational technology (MCT). The Network also provides access to easy on-chain transfers while streamlining post-trade operations and settlements.

Fireblocks also has interests in the decentralized finance (DeFi) space. Last March, the company partnered with leading lending protocol Compound to allow institutional investors to access DeFi opportunities. Thanks to the integration, Fireblocks customers can now earn interest via Compound’s lending protocol.

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Author: Jimmy Aki

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