The picture of institutional investment into crypto is shifting rapidly. To be sure, a recent partnership between Taurus and Figment is the most promising step yet in this space. This new partnership enables banks and other regulated financial institutions to safely participate in cryptocurrency staking. In this way, they are able to find innovative ways to generate revenue and better manage their assets. Figment’s staking infrastructure plugs directly into Taurus’ PROTECT custody platform. Today, institutions have the opportunity to tap into a new world of rewards with large blockchain networks such as Ethereum (ETH) and Solana (SOL), all backed by high security and compliance standards. This is a great step not just for simplifying the staking process but encouraging institutional adoption of digital assets.

Unlocking Staking for Banks: The Taurus-Figment Partnership

Taurus, Europe’s leading provider of digital asset infrastructure for financial institutions, has partnered with Figment. Collectively, they’re working to release the first full-scale staking solution. This collaboration addresses the increasing demand from banks and financial institutions. It helps them participate in the crypto economy in a safe and regulated manner. Figment’s staking infrastructure fits harmoniously into the Taurus PROTECT platform. This allows institutions to simplify the process of staking their digital assets and earning rewards on multiple blockchain networks.

The partnership unlocks access to more than 30 stakable cryptocurrencies, allowing banks to earn returns by locking up digital assets. Taurus’s clients can earn rewards by staking their digital assets on major underlying blockchain networks such as Ethereum (ETH) or Solana (SOL). They can benefit from Figment’s enterprise-grade infrastructure, which powers 30+ other Proof-of-Stake protocols. This provides institutions with a new revenue stream on their current digital asset holdings, just like interest income on traditional investments. This partnership is immensely important. It’s a powerful tool that lowcodes the divide between old school finance and the fast-paced, always growing world of decentralized finance (DeFi). Taurus and Figment are working together to build a secure, private, compliant staking solution. This program opens the door for even more institutional engagement with the crypto economy.

The partnership enables Taurus’ banking clients to issue rewards on Ethereum, Solana and other blockchain-based networks. In the process, it’s making certain those communities are capitalizing on exceptional security and regulatory adherence. The integration with Taurus’ custody platform offers a highly secured and reliable solution to banks. This is particularly important for institutions operating under high levels of regulatory scrutiny. They often require the most stringent levels of security given their national assets.

How Staking Works within Taurus PROTECT

The Taurus PROTECT platform is now coupled with Figment’s staking infrastructure. Together, this winning combination provides institutional clients with a professional, seamless and secure staking experience. Here's a breakdown of how staking works within the platform:

  1. Asset Custody: Banks securely store their digital assets within the Taurus PROTECT custody platform, ensuring the safety and integrity of their holdings.
  2. Staking Selection: Clients can choose from a variety of supported cryptocurrencies and staking options, including Ethereum (ETH), Solana (SOL), and others.
  3. Automated Staking: Once the staking parameters are set, the platform automatically stakes the selected assets through Figment's infrastructure.
  4. Reward Accrual: Staking rewards are automatically accrued and credited to the client's account within the Taurus PROTECT platform.
  5. Monitoring and Reporting: The platform provides comprehensive monitoring and reporting tools, allowing clients to track their staking performance and manage their digital asset portfolios effectively.

The basic mechanics of staking are that holders lock up a specified amount of cryptocurrency to be part of the network’s consensus mechanism. In Proof-of-Stake (PoS) blockchains, stakers are the fundamental actors of transaction validation. They are selected to produce new blocks according to how much cryptocurrency they have staked. In exchange for their involvement, stakers earn rewards denominated in additional cryptocurrency. Through our partnership with Taurus-Figment, we have been able to streamline this process for institutions. It takes away all the intricacies of running staking nodes and makes them follow regulatory requirements.

The Allure of Solana and the Potential for ETFs

Solana (SOL) has recently skyrocketed into the top ranks as a favorite staking option. It still provides phenomenal staking rewards as well as being one of the fastest transaction speeds. The Solana blockchain offers extremely attractive yields for stakers. This unique quality makes it an ideal fit for institutional investors looking to earn passive income on their digital asset portfolios.

Leah Wald, CEO of SOL Strategies, mentions "increasing demand from organizations looking for secure, compliant staking solutions." The collaboration between BitGo and SOL Strategies adds even more credibility to Solana’s infrastructure and proves that institutional adoption of Solana staking is maturing. The two firms are clearly focused on continuing to grow Solana’s staking ecosystem, which can be a major factor in driving more institutional adoption. Moreover, Solana’s comparatively high staking rewards can offer an enticing opportunity for institutional investors looking to chase yield and fueling increased adoption.

The possibility of Solana ETFs including staking is getting some legs too. An ETF which accounts for staking rewards would increase an investor’s return. It’s an approach that has the potential to beat regular ETFs that merely mimic the price movement of the underlying asset. This would only increase institutions’ appetites for Solana and help it grow long term.

Addressing Security and Compliance Concerns

Security and compliance are central tenets of all regulated financial institutions, which is why the Taurus-Figment partnership directly responds to these concerns. Figment’s staking infrastructure operates on strict security principles that meet or exceed ISO and SOC2 Type II certifications. These certifications are a testament to Figment’s commitment to providing a safe and trusted platform for institutional clients.

Zeeve follows these standards, guarantee the highest level of security and data privacy. Zeeve’s experienced, dedicated team of security experts continuously monitor for security vulnerabilities and deploy leading-edge security tools and measures immune-staking nodes. With its support for 35+ Proof-of-Stake (PoS) networks, Zeeve is designed for both mature blockchains and emerging ecosystems. This third option lets institutions keep control of their assets but still avoid the risks associated with slashing, with the benefit of having guaranteed near 100% uptime. Zeeve’s compliance with industry standards, like MiCA legislation, helps keep money laundering at bay.

Plus, Taurus PROTECT connects easily to provide an extra layer of security. This provides peace of mind that all staking activity is done inside a compliant custody environment. It provides institutions certainty. This way, they can sleep at night knowing their assets are safe and they’re following every regulation in the book.

The Broader Impact on Institutional Adoption

We’re excited to see the effect that the Taurus-Figment partnership will have on the greater institutional adoption of cryptocurrencies. Together, the partnership delivers a secure, compliant and user-friendly staking solution. This monumental advancement clears a major hurdle for banks and other financial institutions looking to jump into the crypto world.

Regulated financial institutions are about to turbo charge their engagement with cryptocurrency staking. By 2026, they’re projected to invest 7.2% of their portfolios into cryptocurrencies — nearly $312 billion. The BaFin guidance note on MiCAR crypto-asset services provides for a special regulation of stakes. This change marks a further step toward more established regulatory standards for institutional staking. While institutional crypto staking has the potential to bring in passive income, crypto-assets are a new and bold investment. As expected, more capital is moving from traditional bank deposits to crypto investments. Strong security, compliance and support are needed. Institutional staking platforms need to provide institutional-grade security and compliance. In doing so, they can improve security and compliance standards throughout the industry. It’s like earning compound interest and it’s as simple as that. Since yields are different across tokens, more traditional investment strategies to arbitrage risk find a Netherlands-based computer scientist.

Those institutions start to invest capital into cryptocurrencies, the demand for staking solutions will inevitably grow. We expect this to catalyze further innovation in the staking space. In doing so, it will help spawn the development of new and improved offerings specifically geared to institutional investors. The Taurus-Figment partnership is at the forefront of this trend, paving the way for a future where institutional participation in the crypto economy is commonplace.

The collaboration between Taurus and Figment marks an important milestone in institutional adoption of crypto staking. Together, our partnership delivers a safe, compliant and simple solution. This important regulatory achievement clears a significant hurdle for banks and other financial institutions seeking to participate in the crypto ecosystem. Among the institutions who have recently begun to funnel capital into crypto, this increase in investment will subsequently create more demand for staking solutions, accelerating innovation and growth within the industry’s burgeoning sector. The possibility of Solana ETFs that incorporate staking is jaw-dropping. …of growing institutional appetite for this emerging asset class.” To …the growing institutional interest in this asset class. ,” To this collaboration not only simplifies staking but ensures security and compliance, making staking rewards accessible to regulated financial institutions.