Liquidity provider, B2C2, has teamed up with Blockdaemon and crypto staking platform, StakeWise to provide its clients with liquidity for Ethereum staking. This partnership represents a significant advancement in crypto staking solutions for institutional clients. B2C2 stated it would be the sole over-the-counter (OTC) spot liquidity provider for the digital receipt token sETH-h, built on the liquid staking platform Portara.
B2C2 announced this partnership in a Twitter post, stating it was introducing the world's first institutional-grade staked ETH solution.
1/5 Introducing the world's first institutional grade staked ETH solution.
— B2C2 (@B2C2Group) February 1, 2023
A strategic collaboration with @BlockdaemonHQ and @stakewise_io
Read the press release: https://t.co/SL9ijjBHEA
Following The Merge that happened in September 2022, Ethereum's consensus mechanism now involves the delegation of ETH on the blockchain. This allows customers to validate transactions and earn more ETH as a reward, a process known as staking.
The withdrawal of staked ETH will go live within the year following the completion of the Shanghai Hardfork. However, this makes Ethereum staking inefficient since assets are locked up, leading to no withdrawal capacity.
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These issues created the need for liquid staking, and B2C2 provides a better solution by building on Portara.
According to a statement by B2C2,
"Portara's key innovation is that it is the first solution to provide institutions with liquidity on staked ETH that integrates KYC and AML compliance features into its protocol. These digital receipt tokens are only transferable on-chain between previously KYC/KYB permissioned addresses, which is critical as industry demand for transparency continues to rise."
Portara also delivers a liquid staking receipt which represents the staked ETH. This allows asset holders to enter or exit staked ETH positions through the secondary market, eliminating delays. It also enables them to earn more rewards, unlock greater capital efficiency and stake any amount of Ethereum without the limitation of the 32 ETH staking requirement.
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