Stader Labs Raises $12M in Strategic Sale as It Builds ‘Staking as a Service’ Business

Stader Labs CEO Amitej Gajjala puts the market for staking at $250 billion.

AccessTimeIconJan 20, 2022 at 1:00 p.m. UTC
Updated May 11, 2023 at 5:23 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Crypto staking platform Stader Labs announced Thursday it has closed a $12.5 million private sale led by Three Arrows Capital, valuing the Bangalore, India -based company at $450 million.

  •, Accomplice, GoldenTree Asset Management, Accel and other investors also provided funding.
  • Staking is part of the consensus mechanism of proof-of-stake (PoS) protocols. Instead of relying on computers solving arbitrary mathematical problems to validate transactions on the blockchain, as is the case with proof-of-work, PoS randomly selects those that have staked large amounts of crypto to the chain to be validators.
  • The more staking that occurs on a chain, the more secure the network is. Those that stake their assets are paid interest, in a similar fashion to a bond.
  • Stader is building cross-chain modular middleware that allows users to stake their tokens, and institutions to build applications on top of Stader’s software.
  • An example of this could be a digital assets bank offering staking to their customers. The back end would rely on Stader’s infrastructure, similar to how companies rely on Amazon’s AWS cloud services, said Gajjala.
  • "The staking market is at $250 billion currently, and will hit $400 billion to $450 billion once Ethereum moves to proof of stake,” Gajjala told CoinDesk in an interview. “It’ll be the largest segment of crypto, just like how the bond market is almost 5x the equity market.”
  • Gajjala said that the platform will be compatible with Ethereum when it fully transitions to PoS, which should be around the second quarter of this year. The company picked the Terra and Solana blockchains first because of their mature staking systems.
  • Institutional investors are said to be looking at staking as "Internet Bonds," getting both the exposure to the asset class and a familiar structure.
  • Stader previously raised $4 million from Pantera, Coinbase Ventures and other investors last year.


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; 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 offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.

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 to register and buy your pass now.