Coinbase Cloud, Figment Back New Liquid Staking Protocol

New offering developed by Alluvial is designed to meet compliance and security standards for institutions


Blockworks exclusive art by axel rangel


key takeaways

  • Alluvial’s founding team includes former executives at Figment, Kiln and Index Cooperative
  • New protocol will require contributors to enable embedded KYC and AML checks

Crypto exchange Coinbase’s cloud division is working with Figment to support the founders and operators building what it calls the first enterprise-grade liquid staking protocol. 

The news was revealed Tuesday during Blockworks’ Permissionless event in West Palm Beach. Software development firm Alluvial is building the new protocol, which the company ultimately intends to be governed by a decentralized autonomous organization (DAO). 

Liquid staking on Ethereum has grown from less than 1% market share in January 2021 to more than 30%, according to Dune Analytics data

“There has been growing demand amongst institutions and enterprises that want to access liquid staking but haven’t had a solution that meets compliance and security standards,” Coinbase Cloud Senior Manager Mara Schmiedt told Blockworks. “With Alluvial, we are enabling that access and are focused on unlocking the next wave of adoption and financial innovation in the space.”

Coinbase acquired blockchain infrastructure platform Bison Trails in January 2021 to become the foundational team and platform of Coinbase Cloud. The business offers Web3 application programming interfaces (APIs), services, and infrastructure for software builders.

Figment is focused on offering staking and application layer solutions for token holders and developers building on Web3 technology. The firm raised $110 million in a Series C round in December, bringing its post-money valuation to $1.4 billion.

Alluvial is led by Matt Leisinger, former head of liquid staking products at Figment; Nicolas Maurice, the former chief technology officer of staking-as-a-service platform Kiln; and Mike Taormina, former head of institutional business at the Index Cooperative.

Liquidity is key to unlock the next chapter of financial innovation in Web3, the companies said.

The non-custodial protocol will allow users to stake their tokens and receive receipt tokens that prove ownership of the staked tokens. They can then use those receipt tokens to participate in the broader Web3 economy.  

It will require all contributors to enable embedded know your customer (KYC) and anti-money laundering (AML) checks.

Coinbase Cloud and Figment plan to perform staking services on the network and run validators with clients across regions and cloud providers. Other security-focused validator operators will be added to the protocol over time.

Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.


Upcoming Events

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research



Data publishing costs have historically been a bottleneck for rollups, and as more rollups launch, interoperability will continue to be a major challenge. Avail presents a potential solution to rollup fragmentation through its three products: Avail DA, Nexus, and Fusion, which together aim to unify the web3 experience.


Short-term “sell the news” reactions could follow new BTC price peaks months from now, industry watchers say — but only if history repeats itself


While crypto fundraising remains well off its bull market highs, Q1 data shows capital is returning to the space


Billed as a better BRC-20 fungible token standard, Bitcoin Runes launches tomorrow


Bitcoin miners need to explore unconventional energy avenues or be buried by the financial realities created by this halving


BlackRock’s iShares Bitcoin Trust continues to see daily positive net flows, though its inflow total for a single day hit a new low Wednesday


Binance is making moves, from receiving a new license in Dubai to switching its SAFU fund to USDC