Lido targets institutions with new white-glove staking service

The liquid staking giant wants to onboard the next wave of institutional players into Ethereum

article-image

Qeeraw/Shutterstock modified by Blockworks

share

Lido is introducing Lido Institutional, a B2B-focused white glove service targeted at large customers like crypto funds and asset managers with ETH.

Today, institutions can theoretically stake ETH on Lido by themselves. What Lido’s new initiative aims to address are the anti-money laundering and know-your-customer concerns of institutional clients, allowing them to stake and mint new stETH with no transaction history, thereby avoiding the commingling of institutionally-owned stETH with stETH by Lido’s retail users.

Lido is the largest liquid staking platform, controlling 28.75% of all staked ETH on Ethereum, according to Dune data. That’s down from its staking share peak, which at one time approached a third of all staked ETH. 

Lido Institutional is the liquid staking giant’s latest efforts to grow stETH adoption by building an ecosystem around qualified custodians, MPC wallets and various tech partners.

For instance, Lido’s partnership with Fireblocks allows institutional clients to select Lido as a staking provider to stake their ETH, and is set to go live at the end of the month. Institutional-minted stETH collateral can then be used in integrations with centralized exchanges like Deribit, which enables institutional clients to use stETH for off-exchange settlement, according to Lido’s Institutional Relations Lead Kean Gilbert.

“About 25% of Lido’s TVL today comes from institutional players, and we want to bring on the next 25% with dedicated institutional services focused on them,” Gilbert told Blockworks.

Lido’s institutional-focused product is also a competitive play on the recently launched ether ETFs that lack a staking component, enabling clients to capture the full 3-4% yield of Ethereum Beacon Chain rewards.

Laser Digital, a digital asset subsidiary of Nomura, is also planning to launch an ETH ETF alternative that would return Beacon Chain rewards to stakers.

Lido’s offering is a more decentralized approach to supporting institutions staking goals — because its operator set contains multiple independent entities — yet smooths over rough edges for institutions when it comes to support.

“The BlackRocks and Fidelities of the world are not going to log a ticket on Discord and deal with anonymous contributors,” Gilbert said.

Updated August 7, 2024 at 12:55 pm ET: Clarified timing of Fireblocks/Lido partnership launch.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Unlocked by Template.png

Research

The march toward an interoperable and onchain-by-default internet depends on reliable messaging and value transfer across heterogeneous domains. Crosschain protocols now process >$1.3T in combined annual transfer volume and secure tens of millions of user interactions, yet no single design dominates.

article-image

The goal, per Santiago Santos, is to make crypto a relatable piece of tech for people who may not even understand it

article-image

Stripe stablecoin unit aims to operate under a federal charter enabling regulated stablecoin issuance and custody services

by Blockworks /
article-image

Will TradFi make crypto better or create more problems than it solves?

article-image

Subtle decisions by risk curators saved Aave from significant turmoil

article-image

The new Rootstock Institutional unit aims to connect professional investors to Bitcoin-native yield and liquidity strategies anchored in BTC’s security layer

by Blockworks /
article-image

DOJ files record civil forfeiture against more than 127,000 BTC linked to scam activity

by Blockworks /