Staking: The Cornerstone for ETFs and Digital Asset Treasury Companies

Staking has evolved from a novel yield mechanism into a core component of institutional digital asset strategy. Once confined to crypto-native users and protocol insiders, staking is now firmly on the agenda for traditional institutions; from regulated ETFs to Digital Asset Treasury Companies (DATCOs) seeking to unlock capital efficiency and long-term value.

This shift began most prominently in the European ETF market, where staking is now an established feature in crypto Exchange-Traded Products (ETPs). Today, Twinstake supports over 40% of the region’s staking-enabled ETPs, positioning us as the validator of choice for institutions looking to engage with staking in a secure, compliant, and performance-driven manner.

The United States is following suit. A surge in Ethereum spot ETF applications and approvals has opened new avenues for institutional capital to enter the market. While U.S.-listed Ethereum ETFs currently do not support staking, the industry is closely watching for the anticipated change. In the meantime, a landmark moment has already arrived: the launch of the first U.S. on-chain staking ETF, the REX Shares–Osprey Solana ETF (SOLQ). This product is the first of its kind to incorporate staking into a U.S.-listed fund structure - and Twinstake is proud to serve as the core validator infrastructure provider behind this groundbreaking product.

As ETF innovation continues to accelerate, another institutional segment is emerging with growing conviction: Digital Asset Treasury Companies (DATCOs). These include both firms beginning to hold digital assets like ETH, TON and SOL on their balance sheet and companies pivoting their business models entirely around digital assets - seeking to drive company value directly through staking, staking rewards generation, and protocol alignment.

A Converging Set of Needs Across ETFs and DATCOs

Despite their different mandates and structures, ETFs and DATCOs increasingly demand similar attributes from their staking providers: robust compliance, operational reliability, seamless integration, and above all, institutional-grade performance.

Operational Simplicity Amid Infrastructure Complexity

Staking infrastructure is inherently technical and often incompatible with traditional operational workflows. Institutional clients need it to function as a plug-in, not a rebuild.

Twinstake’s Solution

We operate across 20+ proof-of-stake protocols with native integrations into leading custodians and wallet providers. Our staking offering enables seamless implementation via API, Portal, or Concierge service with minimal lift or ongoing maintenance. Twinstake optimises the infrastructure, monitors for protocol changes and ensures seamless staking support.

Compliance as a Foundational Principle

Institutions operating across multiple jurisdictions require a validator provider who understands the regulatory environment they work within and can cater to it.

Twinstake’s Solution

As an institutional-only staking provider, Twinstake ensures that our service; from onboarding to validator configuration meets the required levels of compliance for our clients. We offer OFAC compliance relayer selection as default and have our Compliance+ offering which provides a best-in-industry approach to compliant validator infrastructure.

Comprehensive and Integrated Reporting

ETF issuers require NAV-calibrated reporting and end-of-day reconciliations, while DATCOs need consistent, regulator-friendly formats for 10-Ks, 10-Qs, and board-level treasury updates.

Twinstake’s Solution

We provide flexible, transparent reporting across formats, delivered via our Portal, API, or through our white glove Concierge service; designed specifically for institutional auditability and internal control needs.

High-Performance, Secure Infrastructure

Underperformance or validator downtime materially impacts both investor yield and fiduciary responsibility. There is zero tolerance for failure in institutional contexts.

Twinstake’s Solution

Our infrastructure is SOC2-certified, fully monitored, and engineered for resilience and reward performance. We consistently deliver market-leading returns and offer slashing insurance for enhanced risk mitigation.

Divergent Requirements: Tailoring for ETF and DATCO Use Cases

Beyond shared foundations, the use cases diverge meaningfully; particularly across redemption timelines, governance involvement, and strategic horizons. Twinstake is uniquely positioned to service these nuanced needs.

ETFs: Liquidity, Regulatory Navigation, and Custodial Integration

ETF providers must meet daily redemption obligations, navigate regulatory ambiguity, and align staking with custodial and fund administration processes.

• Liquidity Management:Our Activation & Exit Calculator, SOL Weekend Optimizer, and pre-signed exit messages ensure that staked positions do not conflict with redemption requirements.
• Cross-Jurisdictional Experience: With a dominant footprint in Europe and now core validator for the REX-Osprey Solana ETF, Twinstake has deep experience navigating staking across different regulatory landscapes.
• Enterprise Support Model: Our white-glove onboarding and 24/7 institutional support ensure frictionless coordination across ETF administrators, custodians, and portfolio management teams.

DATCOs: Long-Term Treasury Strategy, Control, and Governance Integration

DATCOs require a long-term, customizable infrastructure strategy with a trusted staking provider who can take the lift and ensure that they can focus on the wider business and operational tasks.

• Wallet and Custody Flexibility: We support staking across most custodians and wallet providers, enabling companies to align staking activity with internal control frameworks and preferred providers.
• Deep Industry Expertise: Twinstake was created by combining the expertise of WebN, the venture arm of an institutional hedge fund and Nethermind, the 2nd largest execution client on Ethereum. The combination of deep protocol-level expertise and institutional understanding allows us to understand and anticipate the needs of DATCOs.
• Strategic Reporting and Transparency: Our audit-ready data pipelines provide CFOs, boards, and external auditors with full visibility into staking rewards, validator performance, and historical activity.

Twinstake: Enabling Institutional-Grade Staking at Scale

Staking is no longer an experiment at the margins; it is rapidly becoming a cornerstone of institutional crypto exposure.

At Twinstake, we have built an offering that anticipates and solves the real-world complexities that institutions face, whether you are managing a regulated ETF or a digitally native corporate treasury.

We serve many of the leading European staking ETFs, are the core validator infrastructure for the U.S.’s first staking ETF, and support leading digital-native enterprises and treasury managers across the ecosystem. To discuss how Twinstake can support your staking needs, whether you operate a DATCO, ETFs or other institution, please contact sales@twinstake.io

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Disclaimer: Twinstake does not provide staking services to retail customers. This briefing note is not intended as a promotion, offer, invitation or solicitation for the purchase or sale of any investment, nor is it intended to give rise to any other legal relations whatsoever and must not be relied upon for the purposes of any investment decision. It does not constitute financial, legal, or investment advice. If you do not have the relevant professional experience in matters relating to crypto asset investments, you should not consider this briefing note to be directed at you.

This briefing note and the information in it are not directed at, or intended to be made available to, retail customers. It is directed only at persons who are professional investors (for the purposes of the Alternative Investment Fund Managers Directive (2011/61/EU) (known as ‘AIFMD’); professional clients or eligible counterparties for the purposes of the Markets in Financial Instruments Directive (Directive 2004/39/EC) (known as ‘MiFID’); if you are in the UK, to “Investment Professionals” or “High Net Worth Companies” as defined in s.19 and s.49 respectively of the Financial Promotions Order, or as otherwise defined under applicable local regulations and at whom this briefing note and the information in it may lawfully be directed in any relevant jurisdiction.

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