17th june 2025 – (New York) Ether (ETH) has underperformed Bitcoin and other digital assets in 2025, with its price down 24% year-to-date and 36% over the past six months. However, institutional interest in Ethereum staking is accelerating, driven by growing demand for liquid staking solutions, according to Kean Gilbert, head of institutional relations at the Lido Ecosystem Foundation.
On 27th May, Komainu, a regulated digital asset custody provider, began offering custody support for Lido Staked ETH (stETH), the largest Ethereum staking token, which accounts for 27% of all staked Ether. This development provides institutional investors in jurisdictions such as Dubai, the United Arab Emirates, and Jersey with a compliant path to accessing Ethereum staking yields.
“Many asset managers, custodians, family offices, and crypto-native investment firms are actively exploring staking strategies,” Gilbert noted, emphasising the growing sophistication of institutional approaches to digital assets.
Despite Ether’s price struggles, liquid staking tokens like stETH are gaining traction among institutions due to their ability to address challenges related to capital lock-ups and complex custody arrangements. These tokens offer immediate liquidity and are compatible with regulated custodians such as Komainu, Fireblocks, and Copper, Gilbert explained.
Lido’s efforts to drive institutional adoption have intensified with the rollout of Lido v3, which features modular smart contracts designed to meet regulatory compliance requirements. Gilbert highlighted that custody solutions are vital for institutions operating within strict compliance and risk management frameworks, a hurdle that has historically limited access to staking for asset managers and family offices.
While crypto-native firms have been more willing to manage assets directly, traditional institutions increasingly rely on custody services to mitigate risks and ensure compliance. Staked Ether tokens like stETH also provide liquidity through decentralised finance (DeFi), centralised finance (CeFi), and over-the-counter (OTC) markets, making them attractive to both traditional and crypto-native investors.
