Coinbase Prime Partners with Figment for Institutional Staking Expansion
In a significant move for institutional cryptocurrency investing, Coinbase Prime has announced a partnership with Figment Inc., heralding the expansion of institutional staking services for prominent Proof of Stake (PoS) blockchain networks, including Solana (SOL), Cardano (ADA), and Sui (SUI). This collaboration aims to enhance the staking framework available to institutional clients, allowing them to engage more robustly in the burgeoning digital asset ecosystem. As Figment oversees over $18 billion in staked assets, its experience and infrastructure are vital in supporting this initiative.
Details of the Partnership
Initially launched in early 2024, the partnership between Coinbase Prime and Figment began with Ethereum staking, which successfully facilitated over $2 billion in staked assets. This collaboration also played a crucial role in enabling staking features within Grayscale’s U.S. Ethereum exchange-traded product (ETP). With the current expansion, Figment’s staking infrastructure will support not just Ethereum but also other major PoS networks like Avalanche, Polkadot, Cosmos, and NEAR, among others. The integration allows clients to delegate tokens for staking while keeping them under the security of Coinbase Prime’s custody.
Simplified Staking and Enhanced Security
The collaboration brings forth a streamlined interface for institutional clients, facilitating seamless staking, trading, and financing operations all in one place. This unified platform is expected to appeal to institutions looking for efficient ways to manage their digital assets. Lewis Han, Head of Staking Sales at Coinbase, emphasized that this expansion provides institutions with increased flexibility while maintaining the high-security standards associated with Coinbase Prime. The ability to stake without moving assets out of a secure custody environment significantly reduces risk for institutional investors.
Growing Demand for Institutional Staking
As the appetite for staking continues to rise among institutional investors, the timing of this partnership aligns perfectly with market trends. Institutions are looking to integrate staking into their asset management strategies, and Figment’s infrastructure is poised to meet this demand effectively. Just recently, Bitwise Asset Management provided further evidence of this growing interest by launching the Bitwise Solana Staking ETF (BSOL) on the New York Stock Exchange. Such products are indicative of the increasing institutional focus on staking as a legitimate investment strategy.
Coinbase’s Broader Institutional Strategy
This alliance is also part of Coinbase’s broader strategy aimed at enhancing its offerings for institutional clients. In conjunction with this partnership, Coinbase has been pursuing additional avenues for growth, including a recent collaboration with Citigroup to explore stablecoin-based corporate payments. This endeavor aims to streamline cross-border settlements while providing businesses with continuous blockchain-backed payment capabilities. Coinbase’s leadership continues to push for clearer regulatory frameworks in the U.S. to facilitate further institutional adoption of cryptocurrency.
Response to Regulatory Landscape and Future Prospects
The current regulatory landscape is critical to the future of institutional cryptocurrency investing. CEO Brian Armstrong of Coinbase expressed optimism that ongoing negotiations regarding a crypto market structure bill could result in potential advancements in defining standards for digital asset custody and trading. The high-level discussions involving key figures from various cryptocurrency entities further highlight the importance of addressing policy delays that could affect the approval of crypto ETFs. The synergy between Coinbase and Figment is not only a technical partnership but also a strategic move to fortify their positions in a rapidly evolving market where institutional participation is paramount.
