Hashnote, a regulated entity by the CFTC and the Cayman Islands Monetary Authority (CIMA), has joined forces with Lido to introduce an institutional-grade access to decentralized liquid staking through the Hashnote Institutional stETH Fund.
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The Hashnote Institutional stETH Fund is designed to cater to institutional investors globally, providing a regulated and compliant framework for exposure to Lido Staked Ethereum (stETH). This collaboration aims to seamlessly integrate complete on-chain transparency with a secure and compliant environment.
Liquid Staking Revolution
At the heart of this collaboration is the concept of liquid staking, pioneered by Lido. Liquid staking allows immediate liquidity on staked ETH, enabling investors to enjoy the benefits of staking Ethereum while maintaining the liquidity of a directly tradable asset.
This innovative approach has led market makers to quote $stETH directly against fiat and stablecoins, making the liquidity comparable to that of Ethereum itself.
The surge in demand for liquid staking is evident, with Dune board reporting that 78.1% of all distributed ETH is staked via liquid tokens. However, integrating a new digital asset class into a regulated fund structure poses significant challenges, including security, infrastructure, and adherence to regulatory frameworks such as KYC, AML, audit, and reporting.
Hashnote-Lido Collaboration: Breaking Down Barriers
Hashnote and Lido’s collaboration aims to overcome these challenges, offering regulated institutions a fully compliant, secure, and transparent pathway into the realm of liquid staking. The partnership enables:
Institutional-Grade Reliability: Hashnote & Lido vault is meticulously designed to meet the highest standards of institutional investors.
Regulatory Compliance: Hashnote’s regulatory approvals from CFTC and CIMA, coupled with the executive team’s extensive experience, ensure compliance with global financial markets and structured income products.
KYC/AML Compliance: Operating as a “walled garden,” Hashnote mandates KYC/AML compliance for every participant, fostering a secure environment.
Security: Hashnote vaults employ multi-party computation (MPC) wallets and consensus among signers for asset movements, ensuring a secure environment. Smart contract code undergoes third-party audits.
Hassle-Free Management: The user-friendly interface simplifies staking, allowing users to monitor rewards, track performance, and manage assets effortlessly.
Enhanced Yield: Institutions leveraging Hashnote & Lido institutional staking can maximize yield potential by accessing staking on the Lido network.
Risk Management at the Core
Hashnote prioritizes risk management across six major categories, including market risk, liquidity risk, operational risk, regulatory risk, smart contract risk, and counterparty risk. As the most trusted institutional on-chain asset manager, Hashnote aims to provide a secure and user-friendly experience for ETH staking exposure.
Hashnote serves as an innovative gateway for institutional investors to access the blockchain ecosystem. Built with the support of DRW Holdings and Cumberland, Hashnote’s team brings over 50 years of combined experience in traditional finance, options trading, software engineering, and blockchain technology.
The Hashnote ecosystem offers customizable trading strategies, transparency, efficiency, and crucial regulatory compliance, providing institutions with a direct and secure entry into blockchain without exposure to unnecessary complexities and protocol risks.
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About Hashnote
Hashnote is a financial technology firm focused on making the blockchain transparent, secure, and accessible to institutions. Backed by DRW Holdings and Cumberland, Hashnote’s team pioneers institutional digital asset markets, envisioning the future of finance.
Operating within a “walled garden,” Hashnote ensures KYC/AML compliance for every participant, reinforcing its commitment to a secure and regulated environment.
How It Works
Investors can wire USD or send cryptocurrency into the fully regulated, KYC/AML compliant Hashnote Liquid Staking fund. With a minimum investment of US$100,000 or cryptocurrency equivalent, Hashnote stakes ETH through the Lido middleware. Investors have the flexibility to manage their staking strategy, providing options for reward accumulation, reallocation, or redemption.
