The firm aims to build a tokenized staking marketplace
for institutional investors to improve yield performance in their
funds
COPENHAGEN, Denmark , April 17,
2024 /PRNewswire/ -- Northstake, a regulated
custodial virtual asset service provider offering compliant staking
products for institutions, has announced the launch of a tokenized
ETH staking pilot on the Ethereum
testnet, Holesky. The pilot is conducted in collaboration with
leading digital asset manager 3iQ, a Canadian investment fund
manager, alongside CoinFund and CoinDesk Indices, contributing
CESR™, the composite ether staking rate. Industry-leading liquidity
providers are currently onboarding with Northstake and will be
announced shortly.
Northstake demonstrates the capability of tokenized staking to
allow regulated institutions to liquidate their
Ethereum validator nodes within hours instead of days,
while satisfying regulators' requirements. Northstake envisions a
frictionless marketplace for tokenized Web3 infrastructure and
expects the Holesky testnet launch to pave the way for a Mainnet
launch later this year.
Pascal St-Jean, President of 3iQ,
stated, "We are happy to be an early testing partner with
Northstake on tokenized ETH staking. Our goal is to
significantly improve the capital efficiency of our
ETH funds in a regulatory-compliant manner."
Institutional interest in Ethereum staking and
other digital assets has been steadily increasing over the past few
years, with 68% of investors indicating intentions to start
staking or increase their staked amounts following the
Shanghai upgrade. As of
April 2024, more than $109 billion worth of ETH has
been staked on the chain, with institutional investors among the
largest cohorts of participants. Northstake's pilot with 3iQ caters
to a specific demand from institutional investors for the rapid
liquidation of staked Ether in compliance with regulatory
requirements.
Jesper Johansen, Founder and CEO
of Northstake, said, "We are looking forward to supporting 3iQ on
several initiatives from our stronghold in Europe. In the short term, tokenized staking
aims to improve capital efficiency in staking funds by increasing
the assets they are allowed to stake. In the long run, tokenized
staking opens up unprecedented opportunities for institutions to
join a fully regulated marketplace for Web3 infrastructure."
Northstake intends to leverage CoinDesk's standardized
USD-denominated reference rate for spot Ether and the Composite
Ether Staking Rate to ensure transparent settlement prices between
buyers and sellers.
Alan Campbell, President of
CoinDesk Indices, commented, "CESR, which the marketplace has
adopted for benchmarking, OTC derivatives, and research, is
ready to enhance stability and risk management in staking
products like those offered by Northstake."
CoinFund, a Web3 and cryptonative investment firm and
registered investment adviser, recognizes the regulatory
considerations that exist for fund managers when engaging in
staking. Chris Perkins, President of
CoinFund, remarked, "We are excited about tokenized staking as one
of the pathways to regulatory-compliant staking for exchange-traded
funds like 3iQ and other financial institutions. This is
facilitated by having an institutional reference rate for the
crypto asset class, like CESR."
As a next step, Northstake is in talks with digital asset ETF
providers and liquidity providers, and is onboarding new partners
to expand its offerings and customer base. Additionally, Northstake
is actively negotiating the distribution of tokenized staking
solutions with leading digital asset custodians.
Since beginning operations in 2021, Northstake has experienced
remarkable growth. Having raised $3M
in funding in 2023, the company has since announced collaborations
with Fireblocks, Chainalysis, NEAR Protocol, Flare Network, and
Polygon. Coupled with its expanding network presence and strong
financial backing, the company is well-positioned for further
growth and success.
Jesper Johansen, CEO &
Founder of Northstake is available for interviews.
About Northstake A/S
Northstake A/S is a
regulated, custodial, virtual asset service provider offering
compliant staking products for institutions. Northstake offers a
variety of investment vehicles including single, multi-asset,
thematic staking, and yield-generating products in addition to a
suite of OTC and algorithmic trading services. Based in
Denmark, Northstake acts as a
bridge between traditional finance and the crypto
world, simplifying and securing the way institutions invest in
crypto. Through its proprietary multi-chain
crypto staking platform, it carves out accessible
pathways for investors to build yield-generating
crypto products, giving investors the opportunity to
be part of building the economies of tomorrow. Northstake A/S
(VASP, FTID: 17520) is regulated under the Danish Financial
Supervisory Authority (DFSA) and the 5th EU Anti-Money Laundering
Directive (AMLD5) and have recently achieve initial approval for
its VASP licens under Virtual Asset Regulatory Authority (VARA) in
Dubai.
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 Corp. was the first Canadian investment fund manager to offer
public bitcoin investment funds: The
Bitcoin Fund, and the 3iQ Bitcoin ETF, as
well as public ether investment funds: The Ether Fund, and the 3iQ
Ether Staking ETF. To learn more, visit 3iq.io.
About CoinFund
CoinFund is one of the world's
first cryptonative investment firms and a registered investment
adviser founded in 2015. The firm champions the leaders of the new
internet, powered by foresight as active investors to achieve
extraordinary outcomes. CoinFund invests in seed, venture, and
liquid opportunities within the blockchain sector with a focus on
digital assets, decentralization technologies, and key enabling
infrastructure. For more information, visit CoinFund.io,
LinkedIn or join us on X.
About CoinDesk Indices
CoinDesk Indices has led the digital asset revolution, empowering
global investors since 2014. Our indices are the cornerstone of the
largest digital asset products worldwide. Precision-driven and
compliant, indices like the CoinDesk 20 set the standard for
measuring, trading, and investing in crypto. Over
$30B in assets are benchmarked to
CoinDesk Indices' products. CoinDesk Indices' trend signals empower
smart beta and alpha-seeking strategies. Ready to achieve your
digital asset goals? Visit coindeskmarkets.com for more.
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SOURCE Northstake