ANCHORAGE DIGITAL TO STAKE ETHEREUM FOR INSTITUTIONS NEAR ITS LONG-AWAITED “MERGE”!
Anchorage Digital announced the launch of an Ethereum staking service for institutions yesterday (28th), through which they can earn rewards tied to the second-largest digital asset by market cap.
Anchorage Digital’s plan is to hold institutional clients’ cryptocurrency in cold storage to secure their funds. This includes banks, venture capital firms, and even governments. In contrast to hot storage, which occurs when a digital asset is kept on an online wallet, this is when it is kept offline.
Proof-of-stake (PoS) Staking is a consensus method used by blockchains. This is when users of blockchains lock up cryptocurrency in exchange for the blockchain’s native coin, which is used to validate transactions.
PoS is distinct from the proof-of-work (PoW) consensus mechanism that Bitcoin utilizes, which requires a lot of energy-intensive computation to create new blocks.
The second-largest blockchain is getting close to its long-awaited “Merge,” in which it will finally complete the transition from PoW to PoS. Anchorage has just launched Ethereum staking. Ethereum is currently in the process of gradually turning into a PoS blockchain.