Anchorage launches Ethereum staking for institutional investors

Anchorage Digital, a San Francisco-based digital platform, will offer institutions the opportunity to stake Ethereum (ETH). This is in anticipation of Ethereum’s long-promised switch from proof-of work (PoW), to proof-ofstake (PoS), protocol.

Anchorage Digital announced Tuesday that it will introduce ETH staking, a method of earning rewards for being a transaction validater in the Ethereum blockchain. Anchorage Digital’s co-founder and president Diogo Monica called staking a win for both institutional investors as well as the ecosystem.

“By making it easier for institutions to stake Ethereum, we are enhancing the legitimacy of market-tested assets and, in the process eliminating hot wallet risks for institutions seeking to generate new crypto earnings.

Anchorage has high expectations for the Ethereum network upgrade that will connect it to the PoS system. This announcement was made by the Beacon Chain. Investors will be able to receive rewards for ETH they have in custody by staking with a Anchorage validator. After the Merge, validators will be able to earn both the block rewards and the transaction priority fees previously going towards miners.

Related: Ethereum’s Merge FOMO has not been priced in, making it possible for a rise to $2.6K

In December 2020, the Beacon Chain was created as part of Ethereum’s transitory plan. Ethereum launched the Sepolia testnet in June 2022. This network would allow for consensus to be reached using PoS instead of PoW. Multiple times, the official merge date for Ethereum’s mainnet has been delayed. The official merge date is set for August 2022. However, due to delays in the difficulty bomb, that date could be further delayed.

Anchorage created an exchange custody network last month with five digital asset trading platforms — Binance.US. CoinList. Blockchain.com. Strix Leviathan. Wintermute. This was to segregate institutional client money from exchanges into regulated assets vaults. In a round of funding led by KKR, a company raised $350 million.

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