Lido, the largest liquid staking platform in the crypto space, has recently launched a new service called ‘Lido Institutional.’ This B2B-focused white glove service is aimed at catering to large customers such as crypto funds and asset managers who hold ETH.
For those unfamiliar with Lido, the platform allows customers to lock up their ETH and receive a special token called stETH in return. This token can be used for various purposes like trading, collateral, and more, while their ETH continues to earn interest. In fact, Lido currently controls approximately 28.75% of all staked ETH on the Ethereum network, as reported by Dune.
With the launch of Lido Institutional, the platform is further solidifying its position in the market by offering a tailored solution for institutional clients. One of the key benefits of this new service is the segregation of institutionally-owned stETH from retail investors’ stETH, providing a clear distinction and ensuring a seamless experience for all parties involved.
In a time where ETH ETFs are gaining traction, Lido Institutional offers a more sophisticated alternative for hedge funds to gain exposure to ETH without actually purchasing the cryptocurrency. Additionally, unlike ETFs, Lido’s platform allows for staking, which can potentially result in higher returns over time. This decentralized approach not only aligns with the ethos of blockchain technology but also presents a more lucrative opportunity for institutional investors.
By capitalizing on the growing interest in ETH from institutional players, Lido is strategically positioning itself to serve a niche market segment while staying true to its core value proposition. The launch of Lido Institutional marks a significant milestone for the platform and underscores its commitment to innovation and customer-centric solutions in the evolving crypto landscape.