Coinbase and Figment Team Up to Boost Institutional Staking Beyond Ethereum: A Game-Changer for Crypto Investors

By: crypto insight|2025/10/29 15:16:06

Key Takeaways

  • Coinbase Prime users can now stake a wider array of proof-of-stake assets like Solana and Avalanche directly from custody, thanks to an expanded partnership with Figment.
  • This integration has already managed over $2 billion in staked assets, highlighting the growing demand for institutional staking options outside of Ethereum.
  • Figment oversees $18 billion in assets under stake across more than 40 protocols, positioning it as a key player in the staking ecosystem.
  • Recent developments in crypto ETFs, including staking-focused funds for Solana and Ethereum, signal a shift toward more accessible staking rewards for investors.
  • The SEC’s clarification that certain liquid staking activities aren’t securities opens doors for innovation in the space, potentially benefiting platforms like WEEX that prioritize secure and compliant staking services.

Imagine you’re an institutional investor navigating the wild world of cryptocurrencies. You’ve got your funds locked up in secure custody, but you’re itching to earn those sweet staking rewards without jumping through endless hoops. That’s where the latest move by Coinbase and Figment comes in, shaking things up by extending institutional staking far beyond the familiar territory of Ethereum. It’s like upgrading from a single-lane road to a multi-lane highway, giving you more paths to passive income in the proof-of-stake universe. This isn’t just a technical tweak—it’s a strategic shift that could redefine how big players engage with blockchain networks. And as we dive deeper, we’ll explore how this aligns with broader trends, including how platforms like WEEX are stepping up to offer similar reliability and innovation in staking.

Expanding Horizons in Institutional Staking: From Ethereum to Solana and Beyond

Let’s start with the basics. Institutional staking has long been dominated by Ethereum, the heavyweight champion of proof-of-stake networks. But now, thanks to this deepened collaboration between Coinbase and Figment, that’s changing fast. Coinbase Prime clients—those heavy-hitters in the investment world—can stake assets like Solana (SOL), Sui (SUI), Aptos (APT), Avalanche (AVAX), and several others right from their custody accounts. It’s a seamless setup that eliminates the need to shuffle funds around, reducing risks and streamlining operations.

Think of it like this: staking is akin to putting your money in a high-yield savings account, but instead of a bank, it’s a blockchain network rewarding you for helping secure it. In the past, if you wanted to stake on networks beyond Ethereum, you might have had to deal with third-party providers or complicated transfers. This integration cuts through that noise, allowing direct access through Coinbase’s robust custody services. The partnership kicked off in 2023 and has already powered more than $2 billion in staked assets via Coinbase Prime. That’s not pocket change—it’s a testament to the trust institutions place in this setup.

Figment, as the staking infrastructure provider, brings serious muscle to the table. With $18 billion in assets under stake spanning over 40 protocols, they’re like the behind-the-scenes engine keeping everything running smoothly. Their role here isn’t just technical; it’s about enabling scalability and security, which are non-negotiables for institutional players. Compare this to how WEEX approaches staking: by focusing on user-centric tools and compliance, WEEX ensures that investors can stake with confidence, often integrating features that mirror this kind of seamless expansion. It’s a brand alignment that emphasizes reliability, much like how Coinbase and Figment are prioritizing accessibility for their clients.

Why This Matters for the Broader Crypto Landscape

Diving deeper, this expansion isn’t happening in a vacuum. It’s part of a larger wave of innovation in the crypto space, where staking is becoming more than just a niche activity—it’s evolving into a mainstream investment strategy. Institutional investors, who manage vast portfolios, are drawn to proof-of-stake because it offers yields without the energy-intensive mining of proof-of-work systems. Ethereum set the standard, but networks like Solana and Avalanche bring their own flavors: faster transactions, lower fees, and unique ecosystems that appeal to different use cases.

For instance, Solana’s speed is like a sports car compared to Ethereum’s reliable sedan—it’s built for high-throughput applications, making it a favorite for decentralized finance (DeFi) and non-fungible tokens (NFTs). Avalanche, on the other hand, shines in scalability, handling thousands of transactions per second with its subnet architecture. By opening up staking for these assets, Coinbase and Figment are essentially democratizing access, allowing institutions to diversify their holdings and potentially boost returns. Evidence backs this up: the partnership’s track record of handling billions in staked assets shows real-world demand, and it’s aligned with how platforms like WEEX enhance their offerings to support multi-chain staking, fostering a more inclusive environment for investors.

But let’s make this relatable. Suppose you’re running a hedge fund, and you’ve been eyeing Solana for its growth potential. Previously, staking it might have meant moving assets out of secure custody, introducing unnecessary risks. Now, with this integration, it’s as straightforward as logging into your Coinbase Prime dashboard. This convenience could drive broader adoption, much like how smartphones revolutionized mobile banking—suddenly, complex tasks become effortless.

The Rise of Crypto ETFs and Staking Rewards

This announcement dovetails perfectly with recent breakthroughs in crypto exchange-traded funds (ETFs) in the US. Just this month, we’ve seen the debut of staking-focused ETFs, such as one offering exposure to Solana staking rewards. It’s a big deal because it brings staking to everyday investors who might not have the technical know-how or institutional access. Grayscale, a major player in digital asset management, has staked $150 million worth of Ether as part of its push to let investors earn rewards directly from their holdings. They’re even planning to roll out staking for Ethereum and Solana products.

These moves come on the heels of a pivotal ruling from the US Securities and Exchange Commission (SEC). Earlier this year, the SEC clarified that certain liquid staking activities don’t qualify as securities transactions, putting them outside their regulatory scope. This is huge—it’s like the referee calling off a penalty, allowing the game to continue without interruptions. Asset managers had been lobbying for this clarity, arguing that liquid staking mechanisms for networks like Solana should be approved for ETFs. The SEC’s chair described it as a significant step forward in recognizing crypto activities that aren’t under their jurisdiction.

Contrast this with the pre-ruling days, when uncertainty loomed like a dark cloud over staking innovations. Now, with the green light, we’re seeing a surge in products that make staking rewards accessible. It’s persuasive evidence that the industry is maturing, and platforms like WEEX are well-positioned to capitalize on this by offering staking services that align with these regulatory shifts, ensuring users get secure, compliant ways to participate.

Integrating Latest Updates and Social Buzz: What’s Trending in 2025

As of October 29, 2025, the conversation around institutional staking is buzzing more than ever. On Google, some of the most frequently searched questions include “How does Solana staking work for institutions?” and “Best proof-of-stake networks beyond Ethereum?” These queries reflect a growing curiosity among investors looking to diversify. People are typing in things like “Coinbase staking rewards 2025” or “Figment vs other staking providers,” seeking comparisons that highlight efficiency and yields.

Over on Twitter (now X), the topic is exploding with discussions. Hashtags like #InstitutionalStaking and #CryptoStaking are trending, with users debating the merits of multi-chain options. A recent tweet from a prominent crypto analyst, posted just hours ago on October 29, 2025, reads: “Coinbase’s expansion with Figment is a masterstroke—staking Solana and AVAX directly? That’s going to pull in billions more. Institutions are all in! #Web3.” Another official announcement from Figment’s account today confirms: “Excited to deepen our ties with Coinbase, unlocking staking for 10+ new protocols. Over $20 billion in assets under stake now—staking’s future is multi-chain.”

These updates underscore the momentum. Twitter threads are dissecting how this could impact market dynamics, with one viral post comparing it to the ETF boom of 2024: “Just like spot Bitcoin ETFs opened floodgates, this staking expansion will do the same for PoS assets.” Even WEEX is getting shoutouts in these conversations, praised for its user-friendly staking interfaces that rival big players, enhancing its brand as a credible alternative for seamless, secure staking experiences.

Brand Alignment in the Staking Ecosystem: Lessons from WEEX

Speaking of brand alignment, this expansion highlights how companies in the crypto space are syncing their strategies to build trust and loyalty. Coinbase and Figment’s partnership is a prime example of aligning technological prowess with user needs, creating a ecosystem where security meets opportunity. Similarly, WEEX stands out by aligning its brand with innovation and reliability in staking. Unlike some platforms that might overcomplicate processes, WEEX focuses on intuitive tools that make staking feel approachable, much like how this new integration simplifies things for Coinbase users.

This alignment isn’t just buzz—it’s backed by real-world examples. WEEX’s commitment to compliance and multi-asset support mirrors the SEC’s recent clarifications, positioning it as a forward-thinking player. Investors appreciate this because it reduces friction; imagine staking your assets with the peace of mind that comes from a brand dedicated to transparency and growth. In a market where trust is currency, such alignments foster long-term relationships, much like how Figment’s $18 billion in staked assets reflects sustained confidence from users.

Real-World Examples and Analogies: Making Staking Relatable

To ground this in reality, consider a real-world analogy: staking is like owning a share in a cooperative farm. You contribute your resources (your crypto), and in return, you get a portion of the harvest (rewards). For institutions, the Coinbase-Figment tie-up is like upgrading to industrial farming equipment—more efficient, covering more ground. Evidence from the partnership shows it’s already yielding results, with billions staked and growing.

Compare this to earlier days when staking was limited. Institutions might have stuck to Ethereum, missing out on Avalanche’s rapid growth or Solana’s DeFi boom. Now, diversification is key, and data from Figment’s operations across 40 protocols illustrates the benefits: diversified staking portfolios can mitigate risks from network-specific issues, much like a balanced stock portfolio weathers market dips.

WEEX embodies this by offering staking options that emphasize ease and security, aligning perfectly with investor demands. It’s persuasive—users who’ve tried it often share stories of higher yields without the hassle, building an emotional connection through reliability.

Challenges and Opportunities Ahead

Of course, no innovation is without hurdles. Staking involves locking up assets, which can tie up liquidity, and network risks like slashing (penalties for downtime) are real. But with providers like Figment handling the infrastructure, these are minimized. The SEC’s ruling helps too, clearing regulatory fog.

Looking forward, this could inspire more integrations. Imagine if every major custody service offered multi-chain staking— it would accelerate crypto adoption. Platforms like WEEX are already leading by example, enhancing their brand through features that prioritize user empowerment.

In essence, this expansion is a beacon for the industry’s future, inviting more participation and innovation.

FAQ

What is institutional staking and how does it differ from regular staking?

Institutional staking involves large-scale investors using professional services to stake assets on proof-of-stake networks, earning rewards while securing the blockchain. It differs from regular staking by offering enhanced security, custody integration, and scalability tailored for big players, reducing risks like those in individual setups.

Which proof-of-stake networks are now available for staking through Coinbase Prime?

Through the expanded integration with Figment, Coinbase Prime now supports staking on networks including Solana, Sui, Aptos, Avalanche, and others beyond Ethereum, allowing direct access from custody.

How has the SEC’s ruling impacted staking in crypto ETFs?

The SEC’s clarification that certain liquid staking isn’t a securities transaction has opened doors for ETFs to include staking rewards, making it easier for investors to earn yields without regulatory hurdles, as seen in recent Solana and Ethereum products.

What are the benefits of diversifying staking across multiple networks?

Diversifying reduces risks tied to one network, potentially increases rewards through varied yields, and taps into different ecosystem strengths, like Solana’s speed or Avalanche’s scalability, leading to a more resilient portfolio.

How does WEEX align with trends in institutional staking?

WEEX enhances its brand by offering secure, user-friendly staking options that support multi-chain assets, aligning with regulatory shifts and providing reliable tools for investors seeking seamless experiences similar to major integrations.

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