Lido, the largest liquid staking platform in the crypto space, has recently launched ‘Lido Institutional,’ a specialized service tailored towards catering to large customers such as crypto funds and asset managers who hold ETH. This new initiative aims to provide a white-glove experience for institutional clients looking to leverage their ETH holdings.
Lido’s core offering allows customers to lock up their ETH while receiving stETH tokens in return. These tokens can be used for various purposes such as trading, collateral, or earning interest on their ETH holdings. With approximately 28.75% of all staked ETH on Ethereum under its control, Lido has established itself as a dominant player in the market.
The key advantage of Lido Institutional lies in its ability to segregate institutionally-owned stETH from retail investors’ stETH, ensuring a clear distinction between the two. This separation is crucial for institutions seeking exposure to ETH without directly purchasing the asset. As ETH ETFs continue to gain traction, Lido Institutional offers a more sophisticated alternative for hedge funds to access ETH in a decentralized manner, with the added benefit of staking rewards.
While ETH has historically shown steady growth in value, its utility extends beyond mere price appreciation. Staking ETH provides investors with an opportunity to earn passive income, a feature not available to ETH ETFs due to regulatory restrictions. By capitalizing on the growing interest in ETH from institutional investors, Lido has positioned itself as a strategic partner for those looking to maximize their returns in the crypto market.
In conclusion, Lido’s foray into the institutional space with Lido Institutional showcases its commitment to innovation and catering to the evolving needs of the market. By offering a tailored solution for large customers seeking exposure to ETH, Lido has solidified its position as a leader in the liquid staking ecosystem. With the continued rise of institutional interest in crypto assets, Lido’s strategic move is poised to yield significant benefits for both the platform and its institutional clients.