Northstake A/S, a regulated virtual asset service provider based in Copenhagen, Denmark, has unveiled an exciting development for institutional Ethereum (ETH) staking. On November 14, 2024, Northstake announced the addition of Keyrock, a leading market maker, to its ETH validator marketplace. This partnership promises to revolutionize liquidity access for institutional stakeholders while aligning with compliance standards.
The ETH Validator Marketplace by Northstake addresses one of the digital asset industry’s persistent challenges: contingent liquidity. By enabling asset managers to trade their ETH validators, this platform allows a seamless transformation of spot ETFs into total return ETFs. Unlike traditional staking models, Northstake offers the capability to liquidate ETH validator nodes within hours, significantly enhancing liquidity for institutional investors.
Kevin de Patoul, CEO of Keyrock, emphasized the value of the collaboration:
“Northstake has built the largest marketplace for ETH validators, integrating staking and liquidity into one streamlined solution. As a leader in market making, Keyrock is committed to supporting Northstake’s platform, and we look forward to seeing its continued development.“
The addition of Keyrock as the fourth market maker on the platform, alongside GSR, DV Chain, and Nonco, ensures robust liquidity support for digital asset managers looking to optimize staking returns. This collaboration comes at a time when approximately $6 billion USD of ETH associated with North American spot ETFs remains unstaked, presenting untapped opportunities for growth.
A Scalable, Compliant Solution for Institutional Staking
Jesper Johansen, CEO of Northstake A/S, expressed optimism about the platform’s potential:
“Our ETH validator marketplace continues to be positively received by our partners and the wider crypto space. Institutions are recognizing the need for a secure, compliant, and scalable solution to participate in Ethereum staking. By joining us, Keyrock will help create the deepest liquidity for staked ETH available to regulated financial institutions, while ensuring regulated funds can return the highest risk adjusted yield.”
The marketplace is actively onboarding global ETF providers, infrastructure partners, and market makers to expand its reach further. By combining institutional-grade compliance with innovative liquidity solutions, Northstake is setting a new standard for Ethereum staking and validator trading.
About Northstake and Keyrock
Northstake A/S operates under the Danish Financial Supervisory Authority (DFSA) and is recognized for pioneering compliant staking models for institutions. Learn more at www.northstake.dk.
Keyrock, established in 2017, specializes in market making, OTC trading, and options for digital assets, boasting a global team of over 170 experts. The company’s efforts extend to supporting Web3 startups and DeFi protocols. For more information, visit Keyrock.