Institutional participation in proof-of-stake (PoS) consensus networks reached a record high this quarter, following finalized regulatory guidance across key European and Asian markets. Asset managers pledged over $3.1 billion in net new capital to compliant liquid staking infrastructure.
Custody Security and Counterparty Risk
Tier-one custodians are expanding their native staking integration to meet institutional demand. However, fund managers cite slashing risks and network downtime guarantees as primary underwriting concerns, prompting an increased demand for institutional-grade slashing insurance products.