Lido is a renowned liquid staking platform for PoS (Proof-of-Stake) cryptocurrencies that offers its users the convenience of staking their tokens on the platform to obtain a tokenized version of their staked assets at a 1:1 ratio. Lido supports Ethereum 2.0 staking and other Layer 1 PoS blockchains, such as Solana, Polygon, Polkadot, and Kusama. By issuing these tokenized assets, users maintain liquidity and are able to participate in DeFi activities for additional yield while earning staking rewards.

The operational mechanics of Lido revolve around its unique liquid staking solution. This feature allows users to stake any quantity of PoS assets, effectively tackling the issues of illiquidity, complexity, and centralization inherent in traditional PoS staking. When users deposit assets to Lido, they’re staked on the relevant blockchain via Lido’s smart contract, which handles deposits, withdrawals, fund delegation, fees, token minting and burning, and more. Users receive a tokenized version of their deposited funds (stAsset tokens), which can be used in DeFi protocols and dApps to earn additional rewards.

Focusing on the LDO token, it’s crucial to mention that LDO is the native governance token of the Lido protocol. Holders of LDO tokens have the privilege to vote on proposals in the Lido DAO (Decentralized Autonomous Organization). The DAO governs the protocol and makes important decisions regarding its operation, ensuring alignment with stakeholder interests. The DAO oversees fee parameters and distribution, addition and removal of node operators, and other aspects of the protocol, maintaining transparency and decentralization.

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On May 27, Komainu, a regulated digital asset custody provider, introduced custody support for Lido Staked ETH (stETH), Ethereum’s most significant staking token that accounts for 27% of all staked Ether ETHUSD. The service is available for institutional investors in Dubai, United Arab Emirates, and Jersey, a self-governing British Islands territory. This initiative facilitated a compliant route for institutions to access Ethereum staking yields during a period of significant diversification into digital assets.

“Staking strategies are actively being explored by asset managers, custodians, family offices, and crypto-native investment firms,” Gilbert revealed to Cointelegraph. Meanwhile, US exchange-traded fund issuers await clear regulatory guidelines to launch Ethereum staking ETFs.

Despite Ethereum’s lackluster performance, Gilbert noted that institutions find liquid staking tokens like stETH appealing as they address issues related to capital lock-ups and intricate custody arrangements. Tokens like stETH offer immediate liquidity and are compatible with qualified custodians like Komainu, Fireblocks, and Copper.

Lido’s institutional adoption drive has picked up pace recently, with the launch of Lido v3, featuring modular smart contracts designed to help institutions comply with regulatory requirements. Gilbert emphasizes that custody solutions are vital for certain institutions, like asset managers and family offices, which operate under stringent compliance and risk management frameworks.

He contrasted this with crypto-native firms, which are more comfortable handling crypto assets directly and often bypass third-party custody solutions. Gilbert points out that staked Ether tokens like stETH are increasingly being used by both traditional and crypto-native institutions to reap Ethereum staking rewards without tying up capital for extended durations.

These tokens also offer liquidity benefits through decentralized finance (DeFi), centralized finance (CeFi), and over-the-counter (OTC) markets. As a result, the demand for staked Ethereum has surged significantly. Cointelegraph recently reported that the amount of Ether staked in the Beacon Chain hit a new record high.

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According to the Arkham Intelligence dashboard, the lender holds 410,378 staked ETH worth $862.45 million, and the pending withdrawals of staked assets by other centralized crypto exchanges account for around 85% of entities waiting to withdraw. Per Nansen data, Kraken accounts for most of the pending withdrawals with 556,321 ETH, followed by Binance with 216,208 ETH and Coinbase with 117,239.

The recent regulatory actions in the United States could be forcing firms in the region to withdraw their staked ETH. Kraken was fined $30 million by the SEC in February for failing to register its staking services, and the regulator has also filed charges against Gemini while issuing a Wells notice to Coinbase.

Meanwhile, Celsius creditor and crypto blogger Tiffany Fong shared a screenshot of the bankrupt lender’s monthly fee statement on April 14. The statement includes a $72,000 invoice titled “Tiffany Fong litigation,” suggesting that Celsius wants to sue Fong. With approximately $119,000 locked in the firm, Fong has been actively reporting on the Celsius bankruptcy case while sharing leaked internal information.

Celsius Withdraws Over $13 Million of Ethereum from Staking

Celsius, a bankrupt crypto lender, has withdrawn over $13 million worth of Ethereum from staking. This includes 6,521 staked Ethereum that the firm withdrew since the network-enabled withdrawals through the Shapella upgrade. On April 14, on-chain investigator Lookonchain reported that $504.5 million worth of Ethereum had been withdrawn, with Celsius, liquid staking protocol Lido, and Figment being the top three addresses.

According to blockchain analytical firm Nansen, Celsius has withdrawn 4,991 ETH as of April 13, equating to 3.64%. Additionally, the lender holds 410,378 staked ETH worth $862.45 million. Pending withdrawals of staked assets by other centralized crypto exchanges account for around 85% of entities waiting to withdraw, with Kraken accounting for most of the pending withdrawals with 556,321 ETH.

Regulatory actions in the United States could be forcing firms in the region to withdraw their staked ETH. In February, the SEC fined Kraken $30 million for failing to register its staking services. The regulator has also filed charges against Gemini and issued a Wells notice to Coinbase.

Celsius Plans to Sue Creditor for Leaking Confidential Information

Crypto blogger Tiffany Fong has claimed that Celsius wants to sue her in an April 14 tweet. Fong shared a screenshot of the bankrupt lender’s monthly fee statement, including a $72,000 invoice titled “Tiffany Fong litigation.” As a Celsius creditor with about $119,000 locked in the firm, Fong has been actively reporting on the Celsius bankruptcy case while sharing leaked internal information. The blogger also got the broader market attention when she interviewed the founder of the now-defunct crypto exchange, FTX, Sam Bankman-Fried.

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