Northstake Raises $3M to Boost Institutional Crypto Staking

The 2.8 million-euro fundraise comes from PreSeed Ventures, Morph Capital, The Aventures Fund, Funfair Ventures and Delta Blockchain Fund.

AccessTimeIconJun 22, 2023 at 2:00 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

Northstake, a cryptocurrency staking platform aimed at institutional investors, raised 2.8 million euros ($3 million) from PreSeed Ventures, Morph Capital, The Aventures Fund, Funfair Ventures and Delta Blockchain Fund.

The Copenhagen-based company, which saw over $80 million in crypto assets staked in 2022, takes care of the legal and technical sides of staking – the process of supporting a public blockchain such as Ethereum by posting collateral to the network in return for yield – in a regulatory compliant manner.

  • Why Proof-of-Stake Works Like a 'Pawn Shop': 5 Questions With Nansen's Nik Polk
    00:59
    Why Proof-of-Stake Works Like a 'Pawn Shop': 5 Questions With Nansen's Nik Polk
  • Staking Is 'Definitely a Positive' for the Spot Ether ETF Narrative, Analyst Says
    10:14
    Staking Is 'Definitely a Positive' for the Spot Ether ETF Narrative, Analyst Says
  • Tax Expert Breaks Down the Crypto Tax Basics for Beginners
    06:50
    Tax Expert Breaks Down the Crypto Tax Basics for Beginners
  • German Finance Heavyweights Develop Fully-Insured Crypto Staking Offering
    13:53
    German Finance Heavyweights Develop Fully-Insured Crypto Staking Offering
  • There are great expectations within crypto for financial institutions to get some exposure to staking crypto, particularly now that Ethereum, the second largest blockchain, has transitioned to a proof-of-stake consensus system.

    Northstake simplifies the process while keeping compliance in mind through partnerships with custody technology firm Fireblocks and blockchain analytics provider Chainalysis. The Danish firm is courting interest from sovereign wealth funds and the like, CEO Jesper Johansen said.

    “Institutional investors at the asset manager level, at the sovereign fund level are looking at this and trying to figure out what staking is and where does the yield come from,” Johansen said in an interview with CoinDesk. “It's significant that, in this round that we raised, one of our ultimate beneficial owners is ATP, a state-owned pension fund in Denmark and one of the largest asset managers in Europe.”

    Northstake is focused on vanilla staking products, as opposed to complex decentralized staking protocols offered by providers like Lido or Rocketpool, Johansen said. That's because institutions can’t handle anti-money laundering (AML) risks associated with not knowing who a staking counterparty is, he said, or what type of funds are being funneled through smart contracts.

    Kavita Gupta, the founder of Delta Blockchain Fund and an adviser to Northstake, said in a statement: “At Delta, we are bullish on institutional staking services as it allows them to realize the full potential of holding crypto by earning passive income, supporting the network and holding tokens beyond just having them sit as the speculative asset on the balance sheet.”

    Edited by Sheldon Reback.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Ian Allison

    Ian Allison is an award-winning senior reporter at CoinDesk. He holds ETH.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.