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While crypto staking may seem unfamiliar and new, it has many of the same purposes, benefits, and characteristics seen for decades in traditional finance.
Different Vehicles With The Same End Goals
Despite operating in different financial realms, there are many similarities between yield associated with crypto staking and traditional fixed income yields. Both involve earning passive income through investments and their rates of return are influenced by similar factors, like economic conditions, regulatory changes, and technological advancements that affect their profitability and attractiveness.
Crypto staking and fixed income investments can be part of a passive income strategy for institutions or investors seeking steady returns. In crypto staking, participants lock up their cryptocurrency holdings to support network operations and validate transactions, earning rewards in return. Similarly, traditional fixed income investments, such as bonds or certificates of deposit (CDs), pay periodic interest to investors.
This type of strategy can also align with broader goals related to portfolio diversification and risk management. Notably, both crypto staking rewards and fixed income yields can serve as a hedge against inflation, as they may preserve the purchasing power of capital over time.
DAR: Unlocking the Power of Crypto Staking Data for Institutional Investors
As your institution navigates the rapidly evolving digital asset landscape, harnessing the power of crypto staking data may serve as a strategic advantage. At DAR, we specialize in providing comprehensive staking data solutions tailored for institutional investors.
Why should you consider integrating DAR’s Staking Data? Here’s how it can benefit your institution:
- Performance Insights – DAR Staking Data offers insights into the performance of various cryptocurrencies and staking networks, including Ethereum and Cardano currently, and Avalanche, Polkadot, Polygon, and Solana, which will be added soon. By leveraging this data, you can benchmark the performance of your crypto investments against industry standards, identifying opportunities for optimization and maximizing returns.
- Data Quality – DAR prioritizes regulatory compliance and data integrity. Our robust and transparent methodologies adhere to the highest industry standards, enabling your institution to navigate the regulatory landscape with confidence and peace of mind. DAR’s staking data is pulled directly from nodes we run to ensure integrity.
- Risk Management – DAR Staking Data can be a helpful risk management solution that provides visibility into the profiles of different staking assets and networks. Compare data across different chains to make informed decisions about staked amounts, reward potential, and network stability, mitigating potential risks associated with your crypto investments.
Real-World Use Case
DAR provides FTSE Russell with staking data for their FTSE Ethereum index and FTSE Cardano index. Both indices were created in response to investor demand for solutions to accurately track the performance of these staked assets.
For both indices, DAR is the underlying pricing and benchmark provider. Rigorous methodologies have been put in place to determine exchange and asset level eligibility.
Customize Your Staking Data
A partnership with DAR can help your institution unlock new opportunities for growth, enhanced analysis, diversification, and yield generation in the digital asset space.
Book a consult to learn more about our bespoke Staking Data solutions.
DISCLAIMER
All information is provided for information purposes only and provided “as is” without warranty of any kind. Neither Digital Asset Research (“DAR”) nor its respective directors, officers, employees, partners or licensors make any claim, prediction, warranty or representation whatsoever, express or implied, as to the accuracy, timeliness, completeness, merchantability or the fitness or suitability for any particular purpose of any information contained herein or any information or results to be obtained from the use of DAR products.
DAR may have a business relationship with some of the tokens, projects or entities named in this report, but every effort is made to ensure the impartiality and objectivity of the research.
Neither DAR, nor its respective directors, officers, employees, partners or licensors, provide investment advice and nothing contained in this document constitutes financial, investment, tax, or legal advice. No responsibility or liability can be accepted by DAR nor their respective directors, officers, employees, partners or licensors for (a) any loss or damage in whole or in part caused by, resulting from, or relating to any error (negligent or otherwise) or other circumstance involved in procuring, collecting, compiling, interpreting, analyzing, editing, transcribing, transmitting, communicating or delivering any such information or data or from use of this document or links to this document or (b) any direct, indirect, special, consequential or incidental damages whatsoever resulting from the use of, or inability to use, such information. No part of this information may be reproduced, stored in a retrieval system or transmitted in any form or by any means without prior written permission of DAR.
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