Persistence’s Liquid Staking Protocol pSTAKE Teams Up With Anchorage Digital

Liquid staking has become more popular with institutions, particularly after the Ethereum network moved to proof-of-stake.

AccessTimeIconOct 19, 2022 at 2:00 p.m. UTC
Updated Oct 19, 2022 at 9:19 p.m. UTC

Margaux Nijkerk reports on blockchain protocols with a focus on the Ethereum ecosystem. A graduate of Johns Hopkins and Emory universities, she has a masters in International Affairs & Economics. She holds a very small amount of ETH and other altcoins.

Liquid staking protocol pSTAKE has partnered with crypto custodial firm Anchorage Digital to allow Anchorage’s institutional clients to hold the PSTAKE governance token.

pSTAKE is a product of Persistence, a layer 1 blockchain network that focuses on decentralized finance (DeFi) applications that unlock the liquidity of staked assets.

The partnership comes as liquid staking has become more popular, especially after Ethereum transitioned to a proof-of-stake (PoS) consensus mechanism last month.

Liquid staking occurs when users who have staked their tokens are issued new tokens with the same value. The new tokens represent ownership of the staked ones, are fully transferable and can generate yield.

“Longer term, we want to work with Anchorage and other custody service providers to provide custody for liquid staked assets,” Persistence founder Tushar Aggarwal told CoinDesk. “I think they're [Anchorage] going the regulated route, which is the route that we see ourselves going down as well with respect to proof of stake assets,” he added.

In August, pSTAKE went live with its liquid staking system for BNB Chain (BNB). The company also offers liquid staking products for Ethereum and Cosmos, and plans to unveil others soon for Solana and Avalanche.

“If anyone is a holder of PoS assets, on a long enough time horizon, they will want to hold the liquid state version so that they can do interesting other things with it and have the liquidity while keeping the asset state and keep owning yields” said Aggarwal.

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Margaux Nijkerk reports on blockchain protocols with a focus on the Ethereum ecosystem. A graduate of Johns Hopkins and Emory universities, she has a masters in International Affairs & Economics. She holds a very small amount of ETH and other altcoins.

CoinDesk - Unknown

Margaux Nijkerk reports on blockchain protocols with a focus on the Ethereum ecosystem. A graduate of Johns Hopkins and Emory universities, she has a masters in International Affairs & Economics. She holds a very small amount of ETH and other altcoins.