Exploring the Possibilities: Banks and Custodians Stake Their Claims for Ethereum Staking Rewards

Custodians and banks are competing to capture Ethereum staking rewards amid increasing institutional interest. Zodia Custody, a subsidiary of U.K.-based multinational bank Standard Chartered, has recently teamed up with infrastructure provider Blockdaemon to provide extended crypto-staking services to institutional clients.

The Ethereum network’s transition to the Proof-of-Stake system in September has been met with an overwhelmingly positive reaction in the cryptocurrency space, resulting in an approximately 4.4 million increase of ETH assets staked following the Shapella upgrade on April 12. So far, 22.58 million ETH’s ($42 billion) have been staked.

Blockdaemon Supports Zodia Custody’s Infrastructure and Wallet Service

Zodia Custody, backed by Northern Trust and SBI Holdings, is the first bank-owned custodian offering staking services. Blockdaemon supports Zodia Custody’s infrastructure and offers a wallet service for financial institutions and crypto custodians.

Zodia Custody raised $36 million in funding from SBI Holdings and SC Ventures to further build on their success. The funding aims to increase the coverage of stored tokens and upgrade the Interchange settlement product for enhanced asset protection.

Zodia Custody and Blockdaemon Exploring Staking Rewards amidst Regulatory Issues.

The London-based firm is partnering with SBI Digital Asset Holdings to form a joint venture for institutional investors. The venture between SBI DAH and another party is awaiting government clearance, including regulatory approvals in Japan.

There is no denying that institutional investors are the ones truly driving the current crypto bull market. Banks and custodians entering the staking and crypto custody business provide assurance to crypto investors. Zodia Custody and Blockdaemon are exploring staking rewards to stay competitive amidst regulatory issues.

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Kassidy Florette
Kassidy followed her friends to buy her first Bitcoin in 2015, has been participating in various projects since 2019 as a marketing communication lead. Her knowledge and passion brings her in as a contributor.