Liquid staking protocol pSTAKE has partnered with crypto custodial firm Anchorage Digital to allow Anchorage’s institutional clients to hold the PSTAKE governance token.
pSTAKE is a product of Persistence, a layer 1 blockchain network that focuses on decentralized finance (DeFi) applications that unlock the liquidity of staked assets.
The partnership comes as liquid staking has become more popular, especially after Ethereum transitioned to a proof-of-stake (PoS) consensus mechanism last month.
Liquid staking occurs when users who have staked their tokens are issued new tokens with the same value. The new tokens represent ownership of the staked ones, are fully transferable and can generate yield.
Read more: pSTAKE Announces stkBNB to Unlock Liquidity on Staked BNB Token
“Longer term, we want to work with Anchorage and other custody service providers to provide custody for liquid staked assets,” Persistence founder Tushar Aggarwal told CoinDesk. “I think they’re [Anchorage] going the regulated route, which is the route that we see ourselves going down as well with respect to proof of stake assets,” he added.
In August, pSTAKE went live with its liquid staking system for BNB Chain (BNB). The company also offers liquid staking products for Ethereum and Cosmos, and plans to unveil others soon for Solana and Avalanche.
“If anyone is a holder of PoS assets, on a long enough time horizon, they will want to hold the liquid state version so that they can do interesting other things with it and have the liquidity while keeping the asset state and keep owning yields” said Aggarwal.
Read more: BNB Chain Introduces Liquid Staking to Provide Crypto Users Access to More Income Streams