Coinbase CFO says crypto staking for institutional investors could be a ‘phenomenon’ in the future

A senior executive at leading US-based crypto exchange, Coinbase, says staking for blue-chip investors is set to grow in popularity in the coming years.

in a new analyst callAlesia Haas, chief financial officer of Coinbase, said that the company recently offering crypto staking for institutions will be felt later rather than in the short term.

According to Haas, Coinbase has “onboarded institutional clients” by offering them a delegated staking service similar to what is available to retail clients.

“Previously, institutions could access staking through Coinbase Cloud and therefore they could have used our service to run their own node. But by offering it as a delegated staking service similar to what we have for retail clients, we just onboarded institutional clients.

Haas says this tactic will flourish once Coinbase begins offering large-scale institutions liquidity for assets they have already massively pooled, citing top altcoin Ethereum (ETH) as an example.

“What I would like to share with you is its early days. We see a lot of institutions holding Ethereum, for example, as a stackable asset. However, what I would like to say is that we have not yet deployed of truly liquid staking option for ETH2.

According to Haas, institutions may not want their assets to be held indefinitely, but Coinbase hopes to solve their problem.

“So when you stake on ETH2, you lock your assets into Ethereum until the merger and then some time after. For some institutions, this liquidity freeze does not suit them. And so, even though they may be interested in staking, they want to have staking on a liquid asset.

And that’s something we’re trying to solve for them. And I think once we have cash available for assets that institutions have pooled in higher proportions, that’s when we’ll see the real material impact of institutional income. So I think it’s further away, not a short-term phenomenon.

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