Hashnote, a regulated entity of the CFTC and the Cayman Islands Financial Authority (CIMA), has joined forces with Lido to introduce institutional entry to decentralized liquid staking via the Hashnote Institutional sETH Fund.
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Designed to serve institutional traders worldwide, the Hashnote Institutional sETH Fund gives a regulated and compliant framework for publicity to Lido Staked Ethereum (stETH). This collaboration goals to seamlessly combine full on-chain transparency with a safe and compliant surroundings.
Liquid Staking Revolution
The core of this collaboration is the idea of liquid staking, developed by Lido. Liquid staking permits immediate liquidity on staked ETH, permitting traders to take pleasure in the advantages of staking Ethereum whereas sustaining the liquidity of a instantly tradable asset.
This revolutionary method has led market makers to listing $stETH instantly towards fiat and stablecoins, offering liquidity akin to that of Ethereum itself.
The surge in demand for liquid staking is obvious, with Dune’s board reporting that 78.1% of all distributed ETH is staked through liquid tokens. Nevertheless, integrating a brand new digital asset class right into a regulated fund construction poses vital challenges, together with safety, infrastructure and compliance with regulatory frameworks reminiscent of KYC, AML, audit and reporting.
Hashnote-Lido collaboration: breaking down limitations
Hashnote and Lido’s partnership goals to beat these challenges and supply regulated establishments with a totally compliant, safe and clear path into the realm of liquid staking. The partnership permits:
Institutional stage reliability: Hashnote & Lido’s vault has been rigorously designed to fulfill the very best requirements of institutional traders.
Regulatory Compliance: Hashnote’s regulatory approvals from CFTC and CIMA, coupled with the intensive expertise of its administration workforce, guarantee compliance with world monetary markets and structured earnings merchandise.
KYC/AML Compliance: Hashnote acts as a ‘walled backyard’ and commits every participant to KYC/AML compliance, selling a safe surroundings.
Safety: Hashnote vaults use multi-party computation (MPC) wallets and consensus amongst signers on asset actions, making certain a safe surroundings. Sensible contract code undergoes third-party audits.
Problem-free administration: The simple-to-use interface simplifies staking, permitting customers to watch rewards, observe efficiency, and handle property effortlessly.
Enhanced returns: Establishments utilizing institutional staking from Hashnote and Lido can maximize return potential by accessing staking on the Lido community.
Threat administration at its core
Hashnote prioritizes threat administration in six principal classes, together with market threat, liquidity threat, operational threat, regulatory threat, sensible contract threat and counterparty threat. As essentially the most trusted institutional on-chain asset supervisor, Hashnote strives to offer a safe and easy-to-use expertise for ETH staking publicity.
Hashnote acts as an revolutionary gateway for institutional traders to entry the blockchain ecosystem. Constructed with the backing of DRW Holdings and Cumberland, Hashnote’s workforce brings greater than 50 years of mixed expertise in conventional finance, choices buying and selling, software program engineering and blockchain know-how.
The Hashnote ecosystem presents customizable buying and selling methods, transparency, effectivity and essential regulatory compliance, giving establishments direct and safe entry to blockchain with out publicity to pointless complexity and protocol dangers.
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About Hashnote
Hashnote is a monetary know-how firm targeted on making the blockchain clear, safe and accessible for establishments. Backed by DRW Holdings and Cumberland, the workforce at Hashnote is a pioneer in institutional digital asset markets, imagining the way forward for finance.
Hashnote operates inside a ‘walled backyard’ and ensures KYC/AML compliance for each participant, reinforcing its dedication to a secure and controlled surroundings.
The way it works
Traders can switch USD or ship cryptocurrency to the absolutely regulated, KYC/AML compliant Hashnote Liquid Staking fund. With a minimal funding of $100,000 or cryptocurrency equal, Hashnote stakes ETH via the Lido middleware. Traders have the pliability to handle their wagering technique, providing choices for reward accumulation, redistribution, or redemption.