• Northstake, a cryptocurrency staking platform aimed at institutional investors, raised 2.8 million euros ($3 million) from PreSeed Ventures, Morph Capital, The Aventures Fund and other funds.
• Northstake simplifies the process of staking crypto while keeping compliance in mind through partnerships with custody technology firm Fireblocks and blockchain analytics provider Chainalysis.
• The Danish firm is courting interest from sovereign wealth funds and the like to get exposure to staking crypto, particularly now that Ethereum has transitioned to a proof-of-stake consensus system.

Northstake Raises $3M for Institutional Crypto Staking

Northstake recently raised 2.8 million euros ($3 million) from PreSeed Ventures, Morph Capital, The Aventures Fund and other funds to boost its cryptocurrency staking platform designed for institutional investors. Over $80 million in crypto assets were staked on the platform in 2022.

Simplifying Staking Process with Compliance

The Copenhagen-based company takes care of the legal and technical sides of staking – the process of supporting a public blockchain such as Ethereum by posting collateral to the network in return for yield – in a regulatory compliant manner. It simplifies this process while keeping compliance in mind through partnerships with custody technology firm Fireblocks and blockchain analytics provider Chainalysis.

Targeting Institutional Investors

Northstake is targeting interest from sovereign wealth funds and other asset managers who want some exposure to staking crypto, particularly now that Ethereum has transitioned to a proof-of-stake consensus system. It offers vanilla staking products as opposed to complex decentralized protocols offered by providers like Lido or Rocketpool due to AML risks associated with not knowing who a staking counterparty is or what type of funds are being funneled through smart contracts.

Ultimate Beneficial Owners

One of Northstakes’ ultimate beneficial owners is ATP , a state-owned pension fund in Denmark one of Europe’s largest asset managers – suggesting great expectations within crypto for financial institutions getting involved with crypto staking activities.

Conclusion

NorthStakes’ recent fundraising success suggests great potential for institutional involvement in cryptocurrency investing activities going forward – especially given their commitment towards compliance when it comes to managing risk associated with such investments.