Liquid Staked ETH Supported by OCC-Chartered Bank Anchorage Digital

Key Points:

• Anchorage Digital will offer Liquid Staked ETH, allowing institutions to stake ETH and receive liquid staking tokens with network rewards.
• Institutions can stake, hold, and restake LsETH on EigenLayer via Anchorage Digital, providing secure custody and flexible on-chain participation.

Anchorage Digital announced that it will support Liquid Collective’s LsETH, the first OCC-chartered bank to do so in the United States.

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Anchorage Digital Becomes First OCC-Chartered Bank to Support Liquid Staked ETH

This integration allows institutional users to stake Ethereum via the Anchorage Digital platform and receive LsETH, a liquid staking token that keeps liquidity while earning network rewards.

With this, venture capital firms, wealth and asset managers, and protocols can now be participants in liquid staking with ETH held on the Anchorage Digital platform. LsETH, the token received, is representative of staked ETH plus accumulated network rewards, directly accessible within Anchorge Digital accounts.

This move makes Anchorage Digital Bank NA the first U.S.-regulated, OCC-chartered bank to facilitate liquid staking, which is a new opportunity for institutions seeking to engage in ETH staking. The platform, in addition to supporting LsETH, offers secure custody for Liquid Staked ETH and allows clients to restake their LsETH on EigenLayer, providing a comprehensive on-chain participation solution.

The news follows a September development where the asset manager 21Shares added Anchorage Digital and BitGo as the custodians for its cryptocurrency ETFs.

Institutional Adoption of ETH Staking Grows with Anchorage Digital Integration

Liquid Staked ETH offers a solution for stakers to earn Ethereum network rewards while retaining the flexibility to sell or transfer the staked tokens. This token also automatically stakes ETH rewards daily, enhancing the ETH staking experience further.

Stakers of Ethereum receive approximately 3.5% annual percentage return APR in ETH as of Dec. 5, per data from StakingRewards.com. Among its fast-expanding array of mainstream U.S.-based and regulated digital asset custodians are the likes of Fireblocks, Coinbase Custody Trust and Fidelity Digital Asset Services.