Anchorage to Launch Ethereum Staking for Institutions

Regulated cryptocurrency bank Anchorage announced the launch of an Ethereum (ETH) staking service for institutional investors after the network transitioned to the Proof-of-Stake consensus algorithm (PoS).

Institutions can now stake #ETH with @Anchorage. Learn what institutions need to know about the ETH upgrades, why they should stake ETH & how they can collect rewards through Anchorage.

Read more here ⬇️: https://t.co/0TkwoGjXHV

— Anchorage Digital (@Anchorage) June 28, 2022

The company began registering prospective clients for the service.

Presumably, the ‘Merge’ [The Merge] will take place in August. In June, the team moved the Ropsten test network to the PoS algorithm.

After The Merge is deployed on the mainnet, users will be able to stake cryptocurrency for validation. Rewards will consist of two parts: block rewards and fees for transaction priority, which are currently earned by miners. According to Ethereum developer Justin Drake, the stake will be 8%-9%, according to CoinDesk.

According to Anchorage president Diogo Monica, institutional investors used to find it “very inconvenient to participate in staking.”

“One of our large holdings is about to undergo an interesting transition, during which you will be heavily incentivised by games with attractive yields to actually stake your assets. So there is a somewhat crazy rush to land a partner who can actually do staking,” Monica said.

In his view, the current market downturn has not affected Ethereum’s usage. There are use cases not dependent on the cryptocurrency price, 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 accelerating in a bear market or, at least, are not affected by it,” he added.

In December 2021, Anchorage raised $350 million in a Series D funding round. The crypto bank’s valuation reached $3 billion.

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