Anchorage Digital is set to launch an institutional investors staking option on its platform. However, this is a future promise in anticipation of Ethereum’s transition from PoW to PoS consensus protocol.
Anchorage Sets To Introduce ETH Staking Service
Anchorage Digital is a digital platform that is based in San Francisco announced on Tuesday. It owns the first crypto bank to be hired by the federal government.
In addition to its banking services, the firm was reportedly planning to start offering staking services on the Ethereum network. According to the report, its decision is based on the upcoming Ethereum merge that the whole market is anticipating.
The Marge would transform the Ethereum network from the PoW to the PoS consensus model. The report stated that the Beacon Chain would oversee the process as Ethereum connects its mainnet with the PoS protocol.
On Tuesday, Anchorage revealed its intention via a post on its official page. The firm stated that it would start offering Ethereum staking service to institutions.
The service would enable institutional traders to earn rewards by simply validating transactions on the Ethereum network. Diogo Monica, the Owner, and president of Anchorage considered staking to be beneficial to both the network and institutional investors.
While commenting, he said by allowing institutions to state ETH, they are increasing the legitimacy of the giant crypto asset. Also, they are reducing the risk associated with hot wallets for institutions to make more profit in the crypto industry.
Through the post, Anchorage expresses that they have great regard for the upcoming Ethereum network upgrade. Institutional investors who stake their ETH with an Anchorage Validator node would earn block rewards for their participation.
Also, they would enjoy transaction priority charges initially meant for miners. Reports from a local source stated that Anchorage partnered with five prominent crypto trading platforms to form an exchange custody network.
Two of the trading platforms were named to be Binance.US and Blockchain.com. Their task is to differentiate institutional investor assets from trading platforms into storage that are regulated.
Beacon Chain Would Oversee Ethereum’s Upgrade
According to reports, the Beacon Chain would control the process of the upgrade. In late 2020, the Chain was created as an intrinsic part of Ethereum migration.
Recently, Ethereum launched the Sepolia test net for PoS consensus models. Furthermore, the network has been postponing the introduction of the upgrade for a while now.
Even though August has been chosen as the new date for the launch, it is prone to shift again. This is due to some difficulty bomb issues the network is facing.