Benefits of staking products
We lower the technical, financial and legal barriers to help our clients enter a new asset class.
We protect and segregate all client funds using MPC (Fireblocks) that is cyber, tech and crime insured.
regulated and audited
We are a VASP and regulated custodian, currently under ISAE 3402 SOC1 audit and EUAML5 compliant.
EASY TO HOLD
A tax-efficient way to handle assets, as we manage the tax-related compliance and financial regulations.
Physically backed INVESTMENTS
Our investment vehicles are physically backed one-to-one, and are not subject to rehypothecation.
Shares in investment vehicles may be used in credit ratings, whereas crypto, as an intangible asset, often cannot be used.
Staking is the process of holding and locking up a certain amount of crypto assets in a blockchain network to participate in validating transactions and thereby earn rewards.
It works by having token holders commit their tokens to the network as collateral to guarantee the security and consensus of the blockchain network.
The purpose of staking is to secure a blockchain network and validate transactions by network participants locking crypto assets as collateral.
By staking, participants help ensure network stability and security while earning rewards for successful transaction validation.
However, penalties are incurred for any attempt to post false transactions or failure to validate transactions correctly.
Staking products are structured products that consist of a single or a combination of yield-bearing crypto assets for traditional financial rails.
Staking products allow investors to gain exposure to staked crypto assets through a financial instrument they are familiar with.
With staking products, investors do not have to worry about having a crypto asset on the balance sheet. Instead, they invest in a known financial vehicle that represents ownership in a single or a combination of crypto assets.
There are no counterparty risks as investments are 100% physically replicated (full collateralization). Since the assets are ring-fenced from Northstake's balance sheet the investor does not face any Northstake bankruptcy risk.
Investing directly in crypto can present a number of challenges, such as safeguarding one's private keys, securing assets, and counterparty assessing exchanges and custodians.
At Northstake, we enable investors to participate in the crypto space by offering easy access to crypto assets. Our staking products are physically replicated, segregated, and secured with Fireblocks multi-party computation infrastructure technology with hardware isolation.
With our platform, investors can invest in crypto assets directly using their existing custody account and without having to worry about managing or securing the underlying assets themselves.