Swiss-based crypto custody firm Taurus and Lido, a company specializing in staked Ethereum, collaborate to allow customers to earn income from holding and staking ETH.
“The goal is to build a bridge between the world of digital assets with the world of traditional finance,” Taurus CMO Victor Busson said in a release.
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While financial institutions contemplate Ethereum (ETH) staking, regulatory uncertainties hinder adoption. However, according to Taurus Head of Product Vassili Lavrov, FINMA‘s guidance on cryptocurrency staking and European jurisdictions’ anticipated alignment signal progress.
“One open question that was clarified from a banking law perspective was that when funds are locked up, those funds must be available to clients at any given time,” Lavrov said in a release.
Clarification from Lavrov shows the breakthrough potential for banks with liquid staking, ensuring client accessibility to locked funds. This aligns with Tauruss collaborations with Deutsche Bank and Santander, indicating growing institutional interest.
“It‘s quite a steep learning curve, so you’re essentially putting your funds at risk if youre not familiar with how the technology operates, how the blockchain operates, and how to protect your funds,” said Marin Tvrdić, Master of Protocol Relations at Lido. “So this collaboration with Taurus is very important to enable accessibility on banking-grade software.”