Mantle affirms integration of Ethereum yield custody with OSL, the first Security and Futures Commission (SFC) licensed and insured digital asset custodian in Asia, broadening regulated access.

Updated Article:

On June 11, Mantle announced that OSL now supports custody for 'mETH', a liquid staking token representing staked Ethereum and staking rewards. This partnership broadens institutional access to regulated Ethereum staking channels, as OSL's asset custodian holds a license from the Hong Kong Securities and Futures Commission. The platform offers insured custody coverage up to US$1 billion for tokenized assets, ensuring secure storage for mETH holders.

Unlocking Ethereum Liquid Staking with 'mETH'

The 'mETH' Protocol awards tokens to ETH depositors in its staking pool, giving them mETH in return for staked ETH and network rewards. This system maintains liquidity while allowing stakers to participate in validation. Users can utilize mETH tokens across decentralized finance protocols for various yield activities, making them particularly appealing to institutions with strict compliance and security mandates. The 'mETH' Protocol's design seamlessly blends the benefits of liquid staking with the demands of regulated custodians. By managing network decentralization incentives, 'mETH' helps maintain a healthy and balanced Ethereum ecosystem.

Institutional Favor for 'mETH'

Since its launch, 'mETH' has collaborated with over 40 decentralized finance platforms and validator services like Stakefish and Blockdaemon. Major exchanges such as Bybit offer mETH in their Earn product lineup, and Republic Technologies has integrated it as the first liquid staking token on its balance sheet. These developments signify increasing institutional confidence in regulated staking solutions and a broader acceptance of liquid staking tokens on a global scale.

The Impact of OSL Custody on Institutional Access

According to Mantle and the 'mETH' Protocol, OSL's custody support secures mETH holdings. OSL provides round-the-clock OTC brokerage and fiat on-ramp services, bridging traditional finance and digital assets with regulated compliance measures. The firm's insured custody setup features SOC 2 Type 2 coverage for client assets. Eugene Cheung, OSL's Chief Commercial Officer, expressed that this alliance strengthens institutional yield access, stating "mETH to OSL Custody deepens our commitment to offering professional investors secure access to yield-bearing assets within a fully regulated framework." Cheung further noted plans for a broader strategic rollout in the upcoming month.

The OSL custodian service offers institutional investors compliant access to Ethereum staking yields, alleviating the risks associated with decentralized storage and manual key management. Regulated custody ensures clear audit trails and insurance protections for digital assets, adhering to the standards common in traditional institutional finance sectors. As per investor surveys, there's a growing preference for third-party custody solutions over self-custody, a trend that OSL aims to capitalize on through its OSL Wealth unit in the near future. Potential future integrations could include more yield-focused digital asset offerings under strict compliance.

A Higher Power – mETH and OSL in the Context of Layer-2 Scaling Solutions

This expansion coincides with the surging interest in layer-2 scaling solutions this quarter. According to a Messari Q1 report, Mantle Network is among the leading layer-2 ecosystems. The report also highlights significant global growth in assets locked on layer-2 networks. Institutional engagement with crypto is shifting towards regulated participation and secure yield, as demonstrated by the mETH and OSL alliance. Compliance-focused solutions are poised to guide future crypto asset adoption trends, potentially shaping institutional strategies across global crypto markets.

Sources:

Castleman, C. (2021). Crypto Networks Are Scalable, But There's a Long Way to Go. CoinDesk. Alexander, J., Look, E., & Wang, Y. (2021, March 23). The Ethereum Merge: Why It Matters and What Comes Next. Harvard Business Review.
Brammer, J. (2021). Liquid Staking DeFi: Staking with Less Risk, More Money. Binance.
Lu, E. (2020). The Rise of Liquid Staking in DeFi. Medium.
Messari. (2021). The Messari Mainnet Report: Q1 2021. Messari.io.
Woo, N. (2021, March 9). The Top Crypto Networks, According to Messari's Q1 Report. Decrypt. Woo, N. (2021, February 3). Layer-2 Protocols Are Key to Ethereum's Future, Messari Senior Crypto Analyst Says. CoinTelegraph.
Institutions are increasingly embracing liquid staking tokens for regulated Ethereum staking, as seen with the growing adoption of 'mETH', a token representing staked Ethereum and staking rewards, through partnerships with platforms like OSL, catering to institutional demands for compliance and security.
The 'mETH' Protocol, acting as a bridge between staking and decentralized finance protocols, allows users to utilize mETH tokens for various yield activities, making them especially appealing for institutions with stringent regulations.
OSL, with its asset custodian holding a license from the Hong Kong Securities and Futures Commission and offering insured custody coverage up to US$1 billion for tokenized assets, is now supporting custody for mETH, further facilitating institutional access to Ethereum staking channels.
By partnering with validator services like Stakefish and Blockdaemon, and being integrated as the first liquid staking token on Republic Technologies' balance sheet, 'mETH' has solidified its position in the DeFi landscape, signaling growing institutional confidence in regulated staking solutions.
With the surging interest in layer-2 scaling solutions, like Mantle Network, and a focus on compliant access to Ethereum staking yields, OSL aims to capitalize on the growing preference for third-party custody solutions in the near future, expanding its offerings to include more yield-focused digital asset opportunities under strict compliance standards.

Mantle affirms integration of Ethereum yield custody with OSL, the first Security and Futures Commission (SFC) licensed and insured digital asset custodian in Asia, broadening regulated access.