Northstake Launches ETH Validator Marketplace as 3iQ Commits to Stake 80% of Its Assets, Unlocking Institutional ETH Total Returns

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Nov 18, 2024, 09:00 ET

This new model for staking and trading ETH validators is set to solve liquidity challenges and shows a clear pathway to a 100% stake ratio for North American asset managers.

TORONTO, Nov. 18, 2024 /PRNewswire/ -- Northstake A/S, the virtual asset service provider offering compliant staking products for institutions, has demonstrated a new staking model that allows asset managers to trade their ETH validators on a marketplace with industry-leading market makers, including GSR, Nonco, DV Chain and Keyrock.

Northstake's ETH validator marketplace allows asset managers to trade ETH validators at a competitive liquidity premium compared to credit or liquid staking derivatives, helping to solve the industry challenge of contingent liquidity. The marketplace enables Northstake's institutional clients to liquidate their ETH validator nodes in a matter of hours.

The first trade of a validator on Northstake's ETH validator marketplace has been completed by 3iQ Corp, the Canadian investment fund manager which has been a front-runner in digital assets launching their first global 3iQ Ether Staking ETF (TSX: ETHQ) in 2023 and through Tetra Trust as a custodian.

Greg Benhaim, Executive Vice President for Products at 3iQ, said: "3iQ believes that by adding liquidity to our ETF validators, we can unlock the full return potential of ETH for our customers. With strong participation from market makers and sufficient liquidity depth, there's an opportunity to stake the entirety of the ETF's assets, maximizing its value. Northstake is currently the leading solution in addressing this need for ETFs."

In solving persistent issues with contingent liquidity, Northstake will unlock ETH staking opportunities for its clients. Currently, only 28% (approx) of ETH's total supply is being staked, representing missed opportunities for asset managers and investors, particularly those with spot ETH ETF positions. Northstake aims to enable ETH total return products and to become the backbone for an institutional-grade ETH total return token.

Jesper Johansen, CEO of Northstake A/S, said: "Our solution solves the contingent liquidity problem in a regulatory compliant way when staking ETH. This sets a new standard for how institutions should consider incorporating staking in their funds. The evidence and data we generate will provide a clear regulatory pathway for North American-based ETF issuers incorporating staking in their regulatory filings. Ultimately, our aim is to transform spot ETF into total return products"

This news follows the announcements of 3iQ, CoinFund, CoinDesk Indices, DV Chain, Nonco, Keyrock and GSR joining Northstake's tokenized staking initiative earlier in 2024. Continuing its trajectory of strong growth, Northstake is now actively onboarding global ETF providers and market makers.

Jesper Johansen, CEO & Founder of Northstake, and Greg Benhaim, Executive Vice President for Products at 3iQ, are available for interviews.

About Northstake A/S

Northstake A/S is a regulated, EU-based virtual asset service provider offering compliant staking products to institutions. Northstake has demonstrated a new staking model allowing institutional investors to trade Eth validators on a marketplace with industry-leading market markers. Northstake aims to build a tokenized Eth validator marketplace for institutions. Northstake A/S (VASP, FTID: 17520) is regulated under the Danish Financial Supervisory Authority (DFSA). To learn more visit www.northstake.dk

About 3iQ

Founded in 2012, 3iQ is one of the world's leading digital asset investment fund managers, offering investors convenient and familiar investment products to gain exposure to digital assets. 3iQ was the first Canadian investment fund manager to offer public bitcoin investment funds: The Bitcoin Fund (TSX: QBTC) (TSX: QBTC.U) and the 3iQ Bitcoin ETF (TSX: BTCQ) (TSX: BTCQ.U), as well as public ether investment funds: The Ether Fund (TSX: QETH.UN) (TSX: QETH.U) and the 3iQ Ether Staking ETF (TSX: ETHQ) (TSX: ETHQ.U). To learn more about 3iQ, https://3iq.io/.

SOURCE Northstake