Top Five Essential Pillars for Institutional Digital Asset Staking
Digital asset staking faces challenges as institutional players seek regulatory-compliant providers. Current solutions often lack robust risk management and infrastructure suitable for major investors.
Key considerations for institutions evaluating staking options include:
- Diversification of providers and approaches
- Security measures for people, processes, and technology
- Service quality and reporting capabilities
- Custodial integrations
- Regulatory compliance, including standards like SOC 2 and ISO27001
Diversification is crucial for minimizing risks following incidents like the FTX collapse. It reduces impacts from market and security vulnerabilities. Institutions must adopt a "multi-stake" strategy to distribute assets among various providers, enhancing resilience and operational efficiency.
Benefits of diversification for institutions encompass:
- Optimized returns through varied provider strengths
- Improved navigation of shifting regulatory landscapes
- Operational continuity by avoiding reliance on a single entity
Choosing the right partners involves assessing:
Security
Providers should implement best practices in employee vetting, process management, and technology updates.
Service and Reporting
Direct access to account managers and detailed reporting are essential for transparency and effective decision-making.
Custodial Solutions
Collaboration with credible custodians or self-custody options enhances security and trust.
Support for New Assets
Fast adaptation to new tokens is vital for seizing market opportunities.
Innovation in Staking
Partners should offer advancements like Liquid Staking Tokens and secure storage protocols.
Compliance Standards
Adherence to certifications such as SOC 2 and CCSS is necessary for operational integrity and stakeholder confidence.
Environmental sustainability is increasingly important, aligning with institutional priorities and regulatory trends.
A resilient staking strategy combines diversification, bare-metal infrastructure, and adherence to compliance standards, ensuring institutions effectively manage digital assets.