Why institutions opt for non-custodial staking

Institutional Momentum in the Crypto Space

From ETFs to Stablecoins: What’s Driving the Shift

Institutions are here. That has been the narrative in the crypto and blockchain landscape since BlackRock, Fidelity and other prominent financial figures have entered the industry. ETF’s, tokenization of Real-world assets (RWA) and stablecoin adoption are among the reasons why institutions are turning its eyes towards this asset class, potentially bringing in trillions of dollars and disrupting the financial system.

Strategic Reserves Signal Long-Term Confidence

Recently, the administration under President Donald Trump, approved a legislation to adopt digital assets which includes Bitcoin, Ethereum, Cardano, Solana and XRP as part of the U.S strategic reserve, which puts Bitcoin and these other digital assets in the same category as other well-known assets like Gold. It feels safe to say, that crypto is now here to stay.

The Role of Staking in Institutional Adoption

Proof-of-Stake Chains Capture Institutional Interest

With the expansion of market participants to now include major institutional players, the road to explore ways for the technology to innovate on its premises seems closer and brighter than ever. Proof of stake blockchains like Ethereum and Cardano has seen a massive increasement of interest from, especially institutional players.

Yield Generation Meets Risk Management

They are constantly looking for ways to capture value and generate yield, and staking is becoming a popular way to capture additional value from the yield any Proof of stake (PoS) blockchain reward its investors and stakers. The importance of choosing the right staking provider, has become ever more important in an industry, where counterparty risk is more crucial than ever in any investment portfolio, and the tendency is shifting towards more decentralized staking solutions and decreasing counterparty risk as much as possible.

Why Non-Custodial Staking Is Gaining Traction

Reducing Counterparty Risk

“As a professional portfolio manager investing on behalf of others, we were focused on minimizing third-party risk while optimizing yield. Choosing to stake with Myrmidon Staking met all our key criteria: we retain full control over our funds while maximizing staking rewards. Moreover, Myrmidon Staking’s strong operational track record gave us the confidence that our validator nodes are managed with reliability, transparency, and long-term security in mind” — Esben Neupart – GL21 Capital A/S

In the past years, the industry has seen major collapses and exploits, most recently the collapse of U.S exchange FTX and the $1.5bn exploit of ByBit, leaving investors with huge losses and disbelief.

Aligning with Blockchain’s Decentralized Principles

As a response from the market and its participants, opting for decentralized services has increased dramatically in the following years, also emphasizing the original idea behind blockchain technology.

“We have seen more interest in the past years from non-private customers, i.e. institutional players, who are looking for ways to capture staking yield without having to give up ownership of their funds. I would say, that the focus on decreasing counterparty risk has become more important for institutions, than the eager to optimize yield and we expect this to continue going forward. It feels like professional allocators are becoming more intensified to adopt the ethos of what crypto and blockchain was set out to provide” — Nikolaj Rosenthal, CEO – Myrmidon Staking

The Future of Finance Is Being Built on PoS Blockchains

Tokenization and Stablecoins Set the Stage

With the U.S now back in the front of leading the innovation and embracement of the technology, the industry is set to bring in many more market participants, as tokenization of real world assets (RWA) and stablecoin adoption is becoming more and more discussed as an option to completely revolutionize the financial industry.

Staking as the Backbone of the New Financial System

The foundation for this to happen will unequivocally be on a Proof of stake (PoS) blockchain, which provide a programmable software platform for companies to build products for the future of our financial system. With staking acting as the security layer for these blockchains, it will play a major role in transforming the future of finance, and institutional investors will be eager to capture the value of this transformation.