Galaxy Digital has announced a new partnership with Liquid Collective aimed at expanding institutional access to liquid staking, beginning with Ethereum and eventually extending to Solana.
The collaboration follows a recent U.S. Securities and Exchange Commission (SEC) statement in May that clarified staking does not constitute a security or investment contract. This regulatory green light has opened the door for greater institutional participation in staking services.
OTC Support for LsETH
Under the new agreement, Galaxy will provide over-the-counter (OTC) infrastructure and liquidity for Liquid Collective’s staking token, LsETH.
The token allows Ethereum holders to participate in staking while maintaining liquidity—an essential feature for institutions that require flexibility and capital efficiency.
The two firms confirmed that support for Solana (SOL) liquid staking will follow, offering broader blockchain exposure to institutional clients through similar mechanisms.
Bringing Liquid Staking to Institutions
Liquid staking is gaining momentum as it solves a key challenge for investors—earning staking rewards without locking up assets. With institutional players demanding more sophisticated access to staking, Galaxy’s OTC network combined with Liquid Collective’s protocol offers a streamlined and secure entry point.
This partnership underscores the growing maturity of staking infrastructure and reflects a broader trend of traditional finance intersecting with decentralized ecosystems.
Kosta Gushterov
Reporter at Coindoo
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Source: https://coindoo.com/galaxy-partners-with-liquid-collective-to-expand-institutional-liquid-staking/