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Zodia Custody and Blockdaemon Partner on Institutional Staking

Web3 & Enterprise·June 06, 2023, 11:44 PM

London-based cryptocurrency storage provider Zodia Custody, a portfolio company of Japan’s SBI Holdings, has entered into a partnership with blockchain infrastructure provider Blockdaemon relative to crypto staking.

Photo by Traxer on Unsplash

 

Institutional interest

Blockdaemon announced the crypto staking collaboration, tailored to institutional clients, on Twitter on Tuesday. This move comes as institutional interest in staking, the process of contributing digital assets to support blockchain networks and earning rewards, continues to surge.

Following the Ethereum network’s Shapella upgrade on April 12, the amount of ether (ETH) staked increased by an impressive 4.4 million, reaching a total of 22.58 million ETH (equivalent to $42 billion) as of May 23. This remarkable growth in staked assets reflects the growing confidence in the Ethereum network and the potential for substantial returns.

 

First bank-owned custodian

Zodia Custody is a subsidiary of the well-known multinational bank Standard Chartered and backed by prominent institutions such as Northern Trust alongside SBI Holdings. It claims the title of being the first bank-owned custodian to provide staking services exclusively to institutional clients. This collaboration enables Zodia Custody to leverage Blockdaemon’s infrastructure to deliver secure and efficient staking solutions, catering to the specific needs of institutional investors.

Blockdaemon has been at the forefront of facilitating seamless integration between traditional financial institutions and the emerging crypto industry. Earlier this year, the company introduced a wallet service targeted at the institutions and crypto custodians. The wallet assists clients in managing their assets securely, eliminating the need for third-party storage solutions. By partnering with Zodia Custody, Blockdaemon expands its portfolio of services, capitalizing on the rising demand for staking among institutional investors.

The firm’s CEO and Founder, Konstantin Richter, stated that the partnership with Zodia “allows stronger security, automation and simplification of the process to participate in staking, truly accelerating Web3 innovation.”

 

LMAX collaboration

Earlier this month Zodia partnered with digital asset trade execution specialist LMAX Digital to provide a combination of institutional-grade trading infrastructure and custody services to crypto asset manager, Coinshares.

Institutional investors, traditionally cautious about entering the crypto ecosystem, are now becoming more proactive in engaging with digital assets. Staking, with its potential for consistent and predictable returns, has emerged as an appealing opportunity. By participating in staking, institutions not only contribute to the efficient functioning of blockchain networks but also enjoy the rewards associated with validating transactions and securing the network.

The partnership between Zodia Custody and Blockdaemon exemplifies the industry’s efforts to bridge the gap between traditional finance and the rapidly evolving world of cryptocurrencies. As more institutional clients seek exposure to digital assets, it becomes essential to provide them with secure and reliable solutions tailored to their specific requirements.

With demand for staking services continuing to rise, institutional players are recognizing the value of taking a more active part in the crypto ecosystem. With Zodia Custody and Blockdaemon leading the way, the opportunities for institutional clients to engage in staking and reap the rewards are set to expand, further fueling the growth of the entire crypto industry.

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