The partnership between BitGo, a qualified digital asset custodian, and Marinade, a leading liquidity staking protocol on Solana, opens up new opportunities for institutional investors.
What is Marinade Native Staking
Marinade offers two primary staking products for Solana (SOL):
* **Liquid Staking (mSOL):** Users stake SOL and receive mSOL, a liquid token representing their staked SOL and accrued rewards. mSOL can be used across various DeFi protocols. * **Native Staking:** This method allows users to stake their SOL directly with validators through Marinade’s automated strategy, without receiving a liquid token. The SOL remains in the user's wallet (or, in this case, the custodian's wallet) delegated to validators selected by Marinade's algorithm.
The Role of BitGo as a Qualified Custodian
BitGo has become the first U.S. qualified custodian to support Marinade Native Staking. A qualified custodian typically refers to a bank or trust company regulated by the SEC or state banking authorities. This role is critical for attracting institutional capital to digital assets, ensuring security, regulatory compliance, and insurance coverage.
Benefits and Opportunities for Institutional Investors
The BitGo and Marinade partnership provides institutional investors with:
* **Compliance:** Stake SOL while meeting custody regulatory requirements. * **Security:** Leverage BitGo's infrastructure to protect assets from loss. * **Yield Generation:** Access to passive income opportunities through staking rewards. * **Simplicity:** Integrate staking into existing custodial workflows.
The integration of BitGo and Marinade represents a significant step toward creating a secure and compliant environment for institutional investors on the Solana platform. This event signals an increasing interest in and implementation of DeFi among traditional financial institutions.
