Launching Regulated Custody for Liquid Staked Ethereum
LsETH is now live on BitGo!
BitGo is excited to announce its collaboration with Liquid Collective, offering regulated custody for Liquid Staked Ethereum (LsETH) to BitGo Trust Company Inc. users.
What is LsETH?
LsETH, or Liquid Staked ETH, is a token generated when Ethereum (ETH) is staked through a Liquid Collective validator. It acts as a receipt for staked ETH, representing ownership of the staked ETH and any accrued network rewards, minus fees or penalties. LsETH is based on the Ethereum ERC-20 Token model, with a conversion rate that fluctuates to reflect the value of accrued rewards and penalties. This allows stakers to maintain liquidity and use their staked assets in decentralized finance.
Why the BitGo — Liquid Collective Relationship Matters
BitGo’s Liquid Collective integration allows BitGo Trust Company Inc. users and LsETH holders to securely custody LsETH, Liquid Collective’s receipt token representing ownership of staked ETH plus network rewards, with a leading, regulated, qualified custodian.
The collaboration expands BitGo’s custodial support into the rapidly-growing liquid staking market, which has grown to become one of the largest sectors of decentralized finance (DeFi) in the last year. As a Liquid Collective Custodian, BitGo will join the collective of leading web3 teams building and running the enterprise-grade protocol designed to meet the needs of institutions.
“We are elated that BitGo has joined Liquid Collective to offer LsETH custody. BitGo’s commitment to regulated custody and financial services aligns seamlessly with Liquid Collective’s vision for institutional-grade liquid staking,” said Mara Schmeidt, CEO of Alluvial, a team supporting Liquid Collective’s development. “BitGo’s robust infrastructure and emphasis on security make them an ideal partner in our mission to bring secure and compliant staking solutions to the forefront of the crypto industry. This collaboration marks a significant step forward in bridging traditional financial services with the innovative potential of web3 ecosystems.”
“BitGo is pleased to announce custody support for LsETH from Liquid Collective. This integration reflects our commitment to support the dynamic DeFi space while maintaining the highest standards of security and regulatory compliance, ensuring our clients have access to the most secure and scalable custody options in the market.” — Chen Fang, COO of BitGo
Get started today
On the BitGo platform, builders and investors can now custody LsETH. Rewards may vary with the network but still remain competitive with Ethereum’s layer one staking.
Interested in learning more about LsETH, or other BitGo services?
About BitGo
BitGo is the leader in digital asset custody and security solutions. Founded in 2013, BitGo pioneered the multi-signature wallet and is the first digital asset company to focus exclusively on serving institutional clients. In 2018, it launched BitGo Trust Company, the first qualified custodian purpose-built for storing digital assets and established BitGo New York Trust in 2021. In 2022, BitGo launched institutional-grade DeFi, NFT and web3 services. BitGo secures approximately 20% of all on-chain Bitcoin transactions by value and supports more than 700 digital assets within its platform. BitGo provides the security and operational backbone for more than 1500 institutional clients in 50 countries, including many regulated entities and the world’s top cryptocurrency exchanges and platforms.
For more information, please visit www.bitgo.com.
The information contained in this post is provided for general informational purposes only. BitGo obtained the information from sources that we believe to be reliable, but we do not guarantee the accuracy or completeness of the information. BitGo expressly disclaims any and all liability for errors or omissions in the information, or for any actions taken in reliance on the information.
©2023 BitGo Inc. (collectively with its affiliates and subsidiaries, “BitGo”). All rights reserved. BitGo Trust Company, Inc., BitGo Inc., and BitGo Prime LLC are separately operated, wholly-owned subsidiaries of BitGo Holdings, Inc., a Delaware corporation headquartered in Palo Alto, CA. No legal, tax, investment, or other advice is provided by any BitGo entity. Please consult your legal/tax/investment professional for questions about your specific circumstances. Digital asset holdings involve a high degree of risk, and can fluctuate greatly on any given day. Accordingly, your digital asset holdings may be subject to large swings in value and may even become worthless. The information provided herein is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation. BitGo is not directing this information to any person in any jurisdiction where the publication or availability of the information is prohibited, by reason of that person’s citizenship, residence or otherwise.
