Anchorage Digital Integrates Lido for Institutional stETH Custody

Anchorage Digital has integrated with Lido to let institutional clients custody, hold and transact Lido-issued staked-ETH tokens, including stETH and wrapped stETH (wstETH), on Anchorage’s platform. The integration allows those tokens to be held under Anchorage custody and used for trading and settlement.

Anchorage clients can convert ETH exposure into Lido-issued derivative tokens that represent staked balances and accruing rewards, removing the need for institutions to operate validators or manage long lock-up periods on the Ethereum network. Anchorage’s platform will custody the tokens and support on-platform transfers and settlements.

The setup brings institutional custody features such as accounting controls, compliance checks and custody safeguards to liquid staking instruments. Anchorage intends the integration to simplify operational procedures for asset managers, hedge funds, pension plans and other regulated entities that require formal custody arrangements.

Lido pools ETH from multiple participants and issues stETH to represent each participant’s share of the pooled stake plus rewards. Wrapped stETH (wstETH) converts stETH into a non-rebasing token form that keeps a fixed balance on-chain and represents accumulated reward value in the token price, which can simplify accounting and integrations with other on-chain protocols.

The integration targets demand for staking yield after Ethereum’s transition to proof-of-stake in 2022, which requires ETH to be staked to secure the network and earn rewards. Direct staking requires locking ETH into the network and maintaining validator software; liquid staking protocols create tradable derivative tokens that preserve economic exposure while providing liquidity.

Lido is among the largest providers of liquid staking derivatives on Ethereum. Anchorage Digital provides custody and infrastructure for institutional clients and has added integrations aimed at letting those clients access crypto-native yield while retaining custody and reporting controls.