A new staking marketplace has been introduced by MetaMask with aim of giving institutional users access to solo Ether staking.
MetaMask Institutional has launched a staking marketplace that aims to provide recognized users with access to solo Ether staking.
MetaMask to be An Avenue for Ethereum Validators
By introducing a new staking marketplace, MetaMask Institutional is offering institutional customers an opportunity to become Ethereum validators and participate in staking activities.
MetaMask Institutional’s institutional-grade wallet and custody service enables organizations to manage Ether staking using four sellers. These vendors are namely ConsenSys Staking, Blockdaemon, Allnodes, and Kiln.
The staking marketplace simplifies the process of accessing and managing solo staking, which will enable institutions to become validators in the Ethereum network.
It was back in October 2021 when the MetaMask Institutional (MMI) protocol became operational. It provides a platform that is tailored to the needs of organizations and businesses, with a wider range of controls and features.
As Cointelegraph previously reported, the retail wallet offered by MetaMask was no longer suitable for users or institutions dealing with large sums of cryptocurrencies.
This is why it was imperative that a new technique or program was introduced to cater to the increasing demands.
Aims of the New Staking Marketplace
The new staking marketplace service aims to make institutional staking less complicated. It is complexities in the form of features like different fees, terms and conditions, rebates, and reporting standards that it aims to simplify.
Johann Bornman of ConsenSys where he is the MMI product lead also made his comments regarding Ether staking.
Reportedly the company has observed a change in the staking trench from liquid staking to staking with 32-ETH
According to him, this shift is due to not only the Merge upgrade of Ethereum last year but also the upcoming Shanghai/Capella upgrade.
The upcoming upgrade of Ethereum known as Shanghai will unlock withdrawals of deposits for solo stakers.
It will enable allow investors who have put 32 ETH at stake to withdraw their deposit and access their accrued staking returns.
Prior to this, the liquidity provider pools were able to provide support to users to withdraw and deposit smaller amounts of ETH only.
According to Bornman, the Shanghai upgrade could help determine the benefits and timeline for staking Ethereum. This will in effect affect how confident people are in staking ETH.
He believes that this could lead to a significant increase in staking rates in the coming years. In the short term, institutions have already shown a growing interest in staking Ethereum. Such a positive trend is expected to continue due to the recent upgrade.
MetaMask Institutional Simplifies Institutional Staking With New Marketplace
MetaMask Institutional introduced a staking marketplace that would enable institutional clients to become validators of the Ethereum network.
However, for this, they put a benchmark of 32 Ethereum, which means withdrawals would be allowed at this amount only. The company’s aim is to simplify access and management of institutional staking.
This is because the company believes this is crucial for validating data on the Ethereum network. Additionally, the service is designed to easily expand onto on-chain Ethereum staking solutions.
MetaMask Institutional will introduce an upgraded MMI dashboard that would comprise institutional controls, digital asset monitoring, and portfolio management.
In addition to this other features would include transaction reporting and performance analytics. The launch of this dashboard will occur at the same time as the staking marketplace’s release.
Earlier in 2023, MetaMask Institutional provided institutions with the opportunity to participate in DeFi pool staking. It did this by offering access to Ethereum Liquidity Provider pool staking via the Rocket Pool and Lido protocols.
Overall, with the new marketplace, MetaMask aims to simplify institutional staking, however, the practical impact remains to be seen.
Since the crypto industry is all about innovation, therefore, any new invention or development gets a very positive response. The users of crypto are open to change and adapt to it very easily, thus this shall also find its footing in the industry.