Interactive Brokers moves into Ethereum’s $110 billion staking market as institutional demand accelerates
Zerohash rewards can compound after fees, while eligibility rules and unstaking delays limit access to the service and funds. Read the full story on CryptoSlateUnderstand the crypto stories that matter and what to watch next. Get The Catalyst in your inbox
Interactive Brokers launched Ethereum staking for eligible clients as nearly 36% of the cryptocurrency's supply is committed to validators.
On Oct. 13, the brokerage said that qualifying Interactive Brokers LLC customers can stake ETH through its Client Portal, with crypto infrastructure provider zerohash handling the service. Rewards are credited in ETH and can compound while holdings remain staked.
The expansion brings crypto rewards into a platform where customers already trade stocks, bonds, futures and digital assets, allowing the brokerage to compete for assets investors might otherwise keep with specialized cryptocurrency exchanges or staking providers.
It also comes as Ethereum staking reaches new highs. About 43.7 million ETH, representing 35.77% of circulating supply, is committed to validators, according to validatorqueue.com, which uses data from blockchain explorer beaconcha.in. At an ETH price near $2,500, those holdings are worth around $110 billion.
The growth has persisted despite a prolonged decline in cryptocurrency prices.
According to Lido's first-half report, the amount of Ethereum staked across the network climbed 19% to 43.1 million ETH by June 30 from 36.3 million at the beginning of January, even as the cryptocurrency lost 47% of its dollar value.
Much of that growth came from institutional and custodial staking services. Lido reported that the institutional segment's share of staked ETH increased to 35.3% from 25.9% during the six months.
Meanwhile, Lido's own market share declined to 21.2% from 23.9%, despite an increase in the amount of ETH deposited through its protocol.
The shift illustrates the growing role of institutional platforms in a market historically dominated by crypto-native staking providers.
Interactive Brokers is entering that market with an existing customer base accustomed to accessing multiple asset classes through a single brokerage account.
Chief Executive Milan Galik compared the new service with the firm's Stock Yield Enhancement Program, which allows customers to earn income by lending eligible shares.
“We want clients to earn more from the assets they hold,” Galik said.