Institutional staking firm and validator P2P.org has launched crypto staking services for institutional clients in partnership with the OKX exchange.
As part of P2P's staking-as-a-business model (SaaB), business clients will have access to institutional-grade staking services across a range of assets, including Polkadot (DOT), Kusama (KSM), Celestia (TIA), and Cardano (ADA).
Spokespeople for P2P told Cointelegraph, "Staking with OKX enables eligible users to enjoy an APR without the hassle of setting up new nodes," before listing common barriers to entry preventing institutions from participating in the crypto staking market.
A steep learning curve, time investment, and the significant cost of running a node are all impediments preventing businesses from taking advantage of the yields offered by digital assets, P2P spokespeople explained.
P2P.org expands footprint
In April, P2P.org hit $7.5 billion in total value locked (TVL) and introduced its “staking-as-a-businesses” model, which aims to reduce barriers to entry for institutional clients.
Related: Ethereum validator P2P.org enables ETH restaking on EigenLayer.
At the time, Alex Esin, CEO of P2P.org, told Cointelegraph, “Our objective is to assist in the establishment or amplification of staked assets within institutional products, ensuring that staking contributes a minimum of 10% to total revenue, ideally reaching 20%.”
Exposure without expertise
Models like P2P’s SaaB, crypto exchange-traded products, and exchange-traded funds (ETFs) are becoming increasingly popular options for institutional investors and traditional financial institutions. These avenues allow institutional players to gain exposure to the crypto markets without having to master any of the technical expertise inherent to digital assets.
According to a recentCoinShares “Digital Asset Fund Flows” report, inflows into crypto exchange-traded funds and products hit $2 billion in May 2024—bringing the year-to-date figure to more than $15 billion in capital invested.
Institutional interest in crypto was re-ignited following the approval of a spot Bitcoin (BTC) ETF in the United States, as leading asset managers like BlackRock began providing BTC exposure to their clients.
This interest in digital asset investment has spilled into other sectors, where pension fund managers are diversifying their holdings by gaining exposure to Bitcoin.
In a recent Securities and Exchange Commission filing, the State of Wisconsin Investment Board (SWIB), the manager for Wisconsin's state pension system, revealed it had roughly 2.4 million shares of BlackRock's iShares Bitcoin Trust (IBIT) and more than 1 million shares of Grayscale's Bitcoin Trust (GBTC), for a combined $164 million investment into the decentralized currency.
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