• Crypto custodian Aegis has partnered with DeFi protocol Lido to provide custodial services for liquid staking derivatives.
• The partnership is a response to increasing demand from institutional users wary of regulation, as interest in liquid staking derivatives increases with the Merge transition.
• Aegis’ end-to-end custody already includes safe storage and fiat-to-cryptocurrency conversation, and now includes access to Lido’s liquid staking services.
Crypto custodian Aegis has announced a new partnership with decentralized finance (DeFi) protocol Lido to provide custodial services for liquid staking derivatives. The move is a response to increasing demand from institutional investors wary of regulation, as interest in liquid staking derivatives increases with the Merge transition.
The Merge, or the Ethereum blockchain’s transition to a proof-of-stake (PoS) consensus mechanism, has generated a lot of interest in liquid staking derivatives. These derivatives allow users to access liquidity to their staked assets, providing them with the option to stake their tokens and still receive rewards, while also being able to sell their tokens when needed.
The partnership between Aegis and Lido will give institutional investors access to Lido’s liquid staking services, as part of Aegis’ end-to-end custody. Aegis holds trust licenses in both Hong Kong and the U.S., and already offers custodial services for on-chain transactions. This includes safe storage and fiat-to-cryptocurrency conversation. With the new Lido partnership, Aegis clients can now participate in liquid staking.
Aegis CEO Serra Wei said the latest move from the company was in response to demand from institutional users wary of regulation. “We are thrilled to be partnering with Lido and providing our users with access to the ability to stake their tokens without sacrificing liquidity,” Wei said. She added that Aegis is committed to providing high-end solutions for its customers, and that the Lido partnership is a step towards supporting institutional users in the long run.
The partnership between Aegis and Lido is the latest example of how DeFi protocols are expanding their offerings to attract institutional investors. With the Merge transition, the demand for liquid staking derivatives is only expected to grow, and companies like Aegis and Lido are well placed to take advantage of this. It remains to be seen how the partnership between the two companies will pan out in the long term, but it is certainly a step in the right direction for both companies.