Asia-focused institutional-grade staking solutions provider RockX and Cactus Custody, the qualified institutional custodian brand of Matrixport, have signed a partnership agreement that aims to streamline and secure the staking process for mainstream financial players, prioritizing both regulatory compliance and enhanced security.

As staking becomes increasingly recognized by institutions as a viable mechanism to achieve stable yields, several hurdles – such as cybersecurity threats, regulatory barriers and token slashing risks – persist. The entry of institutional custodians like Cactus, the company says, helps assuage these fears by providing robust security solutions.

This partnership follows a surge in Ethereum’s staking volume, catalyzed by the successful implementation of the Shapella Upgrade in April – a development that has piqued institutional interest in digital assets and underscored their potential in yield generation.

Cactus, which holds licences from Hong Kong’s Trust and Company Service Providers Unit and Switzerland’s Financial Market Supervisory Authority, currently safeguards billions in digital assets, across more than 30 blockchains for over 300 institutional clients.

RockX, meanwhile, extends staking services for more than 20 key tokens and has recently surpassed the US$1 billion milestone in cumulative staked assets.

The partnership, the companies say, offers a simplified, yet secure, avenue for depositing, tracking and managing digital assets, and it demystifies the complicated non-custodial staking process, enabling a seamless one-click operation that further enhances ecosystem trust.

“This partnership with Cactus offers a secure gateway for institutions to delve into the lucrative intersection of traditional and decentralized finance,” adds Chen Zhuling, RockX’s CEO. “With our shared commitment to cutting-edge asset management infrastructure and robust security, we aim to facilitate a seamless transition for traditional finance players into the digital asset-staking space.”