Hashnote, a regulated entity by the CFTC and the Cayman Islands Financial Authority (CIMA), has joined forces with Lido to introduce an institutional-grade entry to decentralized liquid staking by way of the Hashnote Institutional stETH Fund.
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The Hashnote Institutional stETH Fund is designed to cater to institutional buyers globally, offering 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
On the coronary heart of this collaboration is the idea of liquid staking, pioneered by Lido. Liquid staking permits rapid liquidity on staked ETH, enabling buyers to get pleasure from the advantages of staking Ethereum whereas sustaining the liquidity of a instantly tradable asset.
This progressive strategy has led market makers to cite $stETH instantly in opposition to fiat and stablecoins, making the liquidity similar to that of Ethereum itself.
The surge in demand for liquid staking is clear, with Dune board reporting that 78.1% of all distributed ETH is staked by way of liquid tokens. Nonetheless, integrating a brand new digital asset class right into a regulated fund construction poses important challenges, together with safety, infrastructure, and adherence to regulatory frameworks resembling KYC, AML, audit, and reporting.
Hashnote-Lido Collaboration: Breaking Down Obstacles
Hashnote and Lido’s collaboration goals to beat these challenges, providing regulated establishments a completely compliant, safe, and clear pathway into the realm of liquid staking. The partnership permits:
Institutional-Grade Reliability: Hashnote & Lido vault is meticulously designed to satisfy the best requirements of institutional buyers.
Regulatory Compliance: Hashnote’s regulatory approvals from CFTC and CIMA, coupled with the manager crew’s in depth expertise, guarantee compliance with world monetary markets and structured revenue merchandise.
KYC/AML Compliance: Working as a “walled backyard,” Hashnote mandates KYC/AML compliance for each participant, fostering a safe surroundings.
Safety: Hashnote vaults make use of multi-party computation (MPC) wallets and consensus amongst signers for asset actions, guaranteeing a safe surroundings. Good contract code undergoes third-party audits.
Problem-Free Administration: The user-friendly interface simplifies staking, permitting customers to observe rewards, monitor efficiency, and handle belongings effortlessly.
Enhanced Yield: Establishments leveraging Hashnote & Lido institutional staking can maximize yield potential by accessing staking on the Lido community.
Threat Administration on the Core
Hashnote prioritizes danger administration throughout six main classes, together with market danger, liquidity danger, operational danger, regulatory danger, good contract danger, and counterparty danger. As essentially the most trusted institutional on-chain asset supervisor, Hashnote goals to supply a safe and user-friendly expertise for ETH staking publicity.
Hashnote serves as an progressive gateway for institutional buyers to entry the blockchain ecosystem. Constructed with the assist of DRW Holdings and Cumberland, Hashnote’s crew brings over 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, offering establishments with a direct and safe entry into blockchain with out publicity to pointless complexities and protocol dangers.
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About Hashnote
Hashnote is a monetary know-how agency centered on making the blockchain clear, safe, and accessible to establishments. Backed by DRW Holdings and Cumberland, Hashnote’s crew pioneers institutional digital asset markets, envisioning the way forward for finance.
Working inside a “walled backyard,” Hashnote ensures KYC/AML compliance for each participant, reinforcing its dedication to a safe and controlled surroundings.
How It Works
Buyers can wire USD or ship cryptocurrency into the totally regulated, KYC/AML compliant Hashnote Liquid Staking fund. With a minimal funding of US$100,000 or cryptocurrency equal, Hashnote stakes ETH by way of the Lido middleware. Buyers have the flexibleness to handle their staking technique, offering choices for reward accumulation, reallocation, or redemption.