Northstake, a regulated custodial virtual asset service provider, has launched its first version of tokenized ETH staking on the Ethereum Mainnet. This groundbreaking development allows institutional investors to liquidate their Ethereum validator nodes in a matter of hours, rather than days, while adhering to relevant regulatory requirements. This move follows a successful pilot run on Ethereum’s Holesky testnet, marking a significant milestone in the evolution of Ethereum staking.
Northstake, regulated by the Danish Financial Authority, announced that leading market makers GSR and DV Chain have joined its tokenized ETH staking solution. This partnership will enable ETFs and regulated funds to leverage tokenized staking for enhanced liquidity during the unbonding of ETH. The innovative approach involves market makers purchasing the validator node’s balance of ETH, providing liquid ETH for a validator node balance subject to the exit and withdrawal queue.
A New Era for Institutional Staking
Jesper Johansen, CEO of Northstake, expressed his excitement about the development, stating, “Today’s news sees several key market makers joining Northstake to create the only compliance-focused ETH validator marketplace for institutional investors. We’re very excited to see how industry-leading market makers contribute to the wider adoption of tokenized ETH staking.”
The tokenized ETH staking initiative on the Ethereum mainnet was expedited following the successful Holesky testnet pilot launched in May 2024. The pilot was conducted in collaboration with 3iQ, CoinFund, and CoinDesk Indices, demonstrating the robust potential of this solution. As of April 2024, more than $109 billion worth of ETH has been staked, with institutional investors playing a significant role in this growth.
Ruchir Gupta, Head of Options & Treasury at GSR, emphasized the importance of Northstake’s solution, stating, “Northstake’s approach addresses a critical need for institutional investors, subsequently allowing institutions to participate in Ethereum staking while maintaining liquidity and adhering to regulatory requirements. This solution unlocks significant value for institutions and supports the integration of digital assets into traditional finance.”
Enhanced Liquidity and Security
Michael Rabkin, Global Head of Business Development at DV Chain, shared his enthusiasm for the partnership, stating, “We are thrilled to be part of Northstake’s innovative tokenized ETH staking initiative. This partnership allows us to help enhance liquidity for institutional Ethereum stakers. Northstake’s solution perfectly complements our commitment to delivering advanced and secure financial services in the digital asset sector. We look forward to driving the broader adoption of tokenized ETH staking and supporting the institutional crypto ecosystem.”
The swift launch of tokenized ETH staking on the Ethereum mainnet has brought new capabilities for ETH staking to 3iQ and other institutional investors. Greg Benhaim, Senior Manager of Trading at 3iQ, expressed his satisfaction with the accelerated mainnet launch, saying, “It’s fantastic that we’ve been able to accelerate the Mainnet launch, bringing new capabilities for ETH staking to 3iQ and institutional investors. We’re delighted to continue our collaboration with Northstake and leading market makers to get the staking solution fully operational ahead of schedule.”
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Northstake has started onboarding clients and additional market makers, with expectations for the tokenized staking solution to be fully operational later this year. This innovative approach to ETH staking signifies a major advancement in the way institutional investors manage and liquidate their Ethereum holdings, setting a new standard for compliance and efficiency in the digital asset space.
About Northstake A/S
Northstake A/S is a highly regulated, custodial, virtual asset service provider offering compliant staking products for institutions. With a variety of crypto staking products including single, multi-asset, tokenized staking, and yield-generating products, Northstake acts as a bridge between traditional finance and the crypto world, simplifying and securing institutional crypto investments.
About GSR
GSR has over ten years of digital asset market expertise as a liquidity provider and active, multi-stage investor. GSR’s suite of services includes OTC Trading, Derivatives, and Market Making. GSR is embedded in every major sector of the digital asset ecosystem, working with token issuers, institutional investors, miners, and leading trading venues. GSR Markets Pte. Ltd. has received a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS). To learn more about GSR, visit www.gsr.io.
About 3iQ
Founded in 2012, 3iQ is one of the world’s leading digital asset investment fund managers, offering investors convenient and familiar investment products to gain exposure to digital assets. 3iQ was the first Canadian investment fund manager to offer public bitcoin investment funds: The Bitcoin Fund (TSX: QBTC) (TSX: QBTC.U) and the 3iQ Bitcoin ETF (TSX: BTCQ) (TSX: BTCQ.U), as well as public ether investment funds: The Ether Fund (TSX: QETH.UN) (TSX: QETH.U) and the 3iQ Ether Staking ETF (TSX: ETHQ) (TSX: ETHQ.U). To learn more about 3iQ, https://3iq.io/.
About DV Chain
As a leading liquidity and market-making service provider, DV Chain empowers institutions, exchanges, and traders globally to access a vast array of cryptocurrencies through cutting-edge APIs and interfaces. Seamlessly settle transactions in multiple fiat currencies on the same day, ensuring swift and efficient trading. From intuitive web-based charting to expert algorithmic orders, DV Chain’s robust tech stack helps scale your business.
Recognized globally, DV Chain provides extensive trading services for digital assets, backed by the experience and track record of DV Trading, a proprietary trading firm of over 500 personnel with offices in Chicago, Miami, New York, Toronto, London, Dubai and Bahamas.
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