{"id":33265,"date":"2022-08-12T02:36:35","date_gmt":"2022-08-12T06:36:35","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=33265"},"modified":"2022-08-12T02:36:39","modified_gmt":"2022-08-12T06:36:39","slug":"institutional-staking-wont-take-off-without-asset-lock-up","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/institutional-staking-wont-take-off-without-asset-lock-up\/","title":{"rendered":"Institutional staking won’t take off without asset lock-up"},"content":{"rendered":"\n
While liquid staking is still being developed, Coinbase's new institutional staking offering won't be a “near-term phenomenon”.<\/h5>\n\n\n\n
\"Institutional
Institutional staking won't take off without asset lock-up<\/figcaption><\/figure>\n\n\n\n

Institutional staking of cryptocurrency assets, such as post-Merge Ethereum<\/a>, may become a “phenomenon” in the future, but not as long as their assets need to be “locked up.”<\/p>\n\n\n\n

Chief Financial Officer (CFO) Alesia Haas said during a Q2 earnings call on August 9 that she didn't anticipate their new exclusive institutional staking service, launched in Q2, to be a “near-term phenomena” until a “really liquid staking option” is made available.<\/p>\n\n\n\n

\u201cThis is the first time we had the products available. Previously, the way that institutions could have access to staking is via Coinbase Cloud […] But offering it as the delegated staking service similar to what we have for retail customers.\u201d<\/p><\/blockquote>\n\n\n\n

Haas clarified that their new staking service is still in its “early days,” and that they won't likely experience a “real material impact” until they have developed a liquid staking alternative for post-Merge Ethereum, also known as ETH2.<\/p>\n\n\n\n

Liquid staking<\/a> is the technique of locking up money while maintaining access to it in order to collect staking incentives.<\/p>\n\n\n\n

Many financial organizations, according to Haas, “don't want their assets retained permanently.”<\/p>\n\n\n\n

\u201cSo when you stake ETH2 you are locking in your assets into Ethereum until the Merge and then some period after. For some institutions, that liquidity lock-up is not palatable to them. And so, while they may be interested in staking, they want to have staking on a liquid asset.\u201d<\/p><\/blockquote>\n\n\n\n

In addition, Haas said that until this liquid staking is made available to financial institutions\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> that can pool in assets at bigger proportions, “we'll see the true material impact of institutional revenue” and reiterated that this is a problem that “we are seeking to solve.”<\/p>\n\n\n\n

Coinbase's delegated <\/a>staking service is available to investors and institutions via “Coinbase Prime,” which was initially introduced in September 2021. The platform also provides other integrated services, like access to a custody wallet with improved protection, real-time data and analytics on the cryptocurrency market, and other features specific to cryptocurrencies, like decentralized governance.<\/p>\n","protected":false},"excerpt":{"rendered":"

While liquid staking is still being developed, Coinbase’s new institutional staking offering won’t be a “near-term phenomenon”. Institutional staking of cryptocurrency assets, such as post-Merge Ethereum, may become a “phenomenon” in the future, but not as long as their assets need to be “locked up.” Chief Financial Officer (CFO) Alesia Haas said during a Q2 […]<\/p>\n","protected":false},"author":38,"featured_media":33271,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[11086],"class_list":["post-33265","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-institutional-staking"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/08\/16522844105439.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/33265","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/38"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=33265"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/33265\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/33271"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=33265"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=33265"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=33265"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}