Northstake, a regulated custodial virtual asset service provider offering compliant staking products for institutions, is launching its first version of tokenized ETH staking on Mainnet. This follows a successful pilot run on Ethereum’s testnet Holesky. Northstake, which the Danish Financial Authority regulates, now enables institutions to liquidate their Ethereum validator nodes within hours instead of days.
Northstake announced GSR and DV chain as the first leading market makers to join its tokenized ETH staking solution. ETFs or regulated funds can now utilize tokenized staking to bring in liquidity when unbonding ETH. This is enabled by the participating market makers buying the validator node’s balance of ETH, effectively paying liquid ETH for a validator node balance subject to the exit and withdrawal queue.
Jesper Johansen, CEO of Northstake, said: “Today’s news sees several key market makers joining Northstake to create the only compliance-focused ETH validator marketplace for institutional investors. We’re very excited to see how industry-leading market makers contribute to the wider adoption of tokenized ETH staking.”
The move to launch tokenized ETH staking on the Ethereum mainnet was expedited, following the success of the Holesky testnet pilot launched in May 2024. This testnet pilot was run in collaboration with 3iQ, CoinFund, and CoinDesk Indices. As of April 2024, more than $109 billion worth of ETH has been staked, with institutional investors contributing significantly to this figure.
Ruchir Gupta, Head of Options & Treasury, GSR: “Northstake’s approach addresses a critical need for institutional investors, subsequently allowing institutions to participate in Ethereum staking while maintaining liquidity and adhering to regulatory requirements. This solution unlocks significant value for institutions and supports the integration of digital assets into traditional finance.”
Michael Rabkin, Global Head of Business Development, DV Chain: “We are thrilled to be part of Northstake’s innovative tokenized ETH staking initiative. This partnership allows us to help enhance liquidity for institutional Ethereum stakers. Northstake’s solution perfectly complements our commitment to delivering advanced and secure financial services in the digital asset sector. We look forward to driving the broader adoption of tokenized ETH staking and supporting the institutional crypto ecosystem.”
Greg Benhaim, Senior Manager of Trading at 3iQ, said: “It’s fantastic that we’ve been able to accelerate the Mainnet launch, bringing new capabilities for ETH staking to 3iQ and institutional investors. We’re delighted to continue our collaboration with Northstake and leading market makers to get the staking solution fully operational ahead of schedule.”
Northstake has begun onboarding clients and additional market markers and expects the tokenized staking solution to be fully operational later this year.
About Northstake A/S
Northstake A/S is a highly regulated, custodial, virtual asset service provider offering compliant staking products for institutions. Northstake offers a variety of crypto staking products including single, multi-asset, tokenized staking, and yield-generating products in addition to a suite of OTC and algorithmic trading services. Based in Denmark and Dubai, Northstake acts as a bridge between traditional finance and the crypto world, simplifying and securing the way institutions invest in crypto. Northstake A/S (VASP, FTID: 17520) is regulated under the Danish Financial Supervisory Authority (DFSA).
About GSR
GSR has over ten years of digital asset market expertise as a liquidity provider and active, multi-stage investor. GSR’s suite of services includes OTC Trading, Derivatives, and Market Making. GSR is embedded in every major sector of the digital asset ecosystem, working with token issuers, institutional investors, miners, and leading trading venues. GSR Markets Pte. Ltd. has received a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS). To learn more about GSR, visit www.gsr.io.
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 was the first Canadian investment fund manager to offer public bitcoin investment funds: The Bitcoin Fund (TSX: QBTC) (TSX: QBTC.U) and the 3iQ Bitcoin ETF (TSX: BTCQ) (TSX: BTCQ.U), as well as public ether investment funds: The Ether Fund (TSX: QETH.UN) (TSX: QETH.U) and the 3iQ Ether Staking ETF (TSX: ETHQ) (TSX: ETHQ.U). To learn more about 3iQ, https://3iq.io/.
About DV Chain
As a leading liquidity and market-making service provider, DV Chain empowers institutions, exchanges, and traders globally to access a vast array of cryptocurrencies through cutting-edge APIs and interfaces. Seamlessly settle transactions in multiple fiat currencies on the same day, ensuring swift and efficient trading. From intuitive web-based charting to expert algorithmic orders, DV Chain’s robust tech stack helps scale your business.
Recognized globally, DV Chain provides extensive trading services for digital assets, backed by the experience and track record of DV Trading, a proprietary trading firm of over 500 personnel with offices in Chicago, Miami, New York, Toronto, London, Dubai and Bahamas.