Generating Yield on Your Cold Storage Assets through Native Staking
What is staking?
Staking is a Proof-of-Stake (PoS) consensus mechanism that allows crypto investors to generate yield on their digital assets by depositing them in a smart contract and locking them for a specific period to help facilitate transactions on a PoS blockchain. Stakers are then rewarded for participating and securing the blockchain by receiving a return on their staked assets (typically in cryptocurrency), the amount of which varies depending on the assets and staking protocols.
This mechanism offers an attractive opportunity for investors to do more with their assets than to leave them sitting idle in their crypto wallets. While staking had primarily been used by the retail market following its inception, institutional-grade solutions now offer corporate clients the ability to safely reap the benefits of participating in this consensus mechanism by putting their cold storage assets to work.
Backed by Ceffu’s Qualified Wallet, our core cold storage solution, institutions can generate a yield on select assets held in their segregated cold wallet through our cold storage staking (or Native Staking) product.
How does cold storage staking work?
Ceffu allows institutional clients to commit their digital assets as votes and pool them into a staking pool to elect delegates who will validate blocks on the blockchain and ensure its security. Staking rewards are later distributed to the blockchain’s delegates for keeping it secure, who then redistribute part of the rewards to users of the networks based on their individual votes or contributions.
Through cold storage staking, Ceffu provides a safe and direct gateway to all the validators of select networks (such as Injective, our first staking partner) through which institutions would want to stake their digital assets – all from the security of our insured, institutional-grade cold storage solution.
All node validators of a blockchain can be seen on the protocol’s website. Institutional users of our native staking feature have full autonomy and flexibility to choose which validators to stake their assets with and can change as needed based on their performance. Staking rewards are distributed directly back to the Qualified Wallet through which the assets are staked.
How to start staking on Ceffu
Ceffu’s native staking feature currently supports $INJ and $BNB on the Injective and BNB Chain protocols, respectively. After logging into your Ceffu account, go to the staking portal and select the asset you wish to stake. From there, select any of the protocol’s validators to delegate your assets to and begin earning rewards. Note that the staking lockup period, minimum amount required to stake, and other factors may differ based on the staking protocol.
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Ceffu is a compliant, institutional-grade custody platform offering custody and liquidity solutions that are ISO 27001 & 27701 certified and SOC Type 1 & Type 2 attested. Its multi-party computation (MPC) technology, combined with a customizable multi-approval scheme, provides bespoke solutions allowing institutional clients to safely store and manage their digital assets through its insured, segregated cold storage solution, Qualified Wallet. Institutions also benefit from Ceffu’s secure gateway to a wide range of liquidity products within the Binance ecosystem as Binance’s institutional custody partner.