Coinbase and Figment Team Up to Boost Institutional Staking Beyond Ethereum: A Game-Changer for Crypto Investors

By: crypto insight|2025/10/29 23:00:09

Key Takeaways

Coinbase Prime users can now stake a wider array of proof-of-stake assets like Solana and Avalanche directly from custody, thanks to an expanded partnership with Figment.
This integration has already managed over $2 billion in staked assets, highlighting the growing demand for institutional staking options outside of Ethereum.
Figment oversees $18 billion in assets under stake across more than 40 protocols, positioning it as a key player in the staking ecosystem.
Recent developments in crypto ETFs, including staking-focused funds for Solana and Ethereum, signal a shift toward more accessible staking rewards for investors.
The SEC’s clarification that certain liquid staking activities aren’t securities opens doors for innovation in the space, potentially benefiting platforms like WEEX that prioritize secure and compliant staking services.

Imagine you’re an institutional investor navigating the wild world of cryptocurrencies. You’ve got your funds locked up in secure custody, but you’re itching to earn those sweet staking rewards without jumping through endless hoops. That’s where the latest move by Coinbase and Figment comes in, shaking things up by extending institutional staking far beyond the familiar territory of Ethereum. It’s like upgrading from a single-lane road to a multi-lane highway, giving you more paths to passive income in the proof-of-stake universe. This isn’t just a technical tweak—it’s a strategic shift that could redefine how big players engage with blockchain networks. And as we dive deeper, we’ll explore how this aligns with broader trends, including how platforms like WEEX are stepping up to offer similar reliability and innovation in staking.

Expanding Horizons in Institutional Staking: From Ethereum to Solana and Beyond

Let’s start with the basics. Institutional staking has long been dominated by Ethereum, the heavyweight champion of proof-of-stake networks. But now, thanks to this deepened collaboration between Coinbase and Figment, that’s changing fast. Coinbase Prime clients—those heavy-hitters in the investment world—can stake assets like Solana (SOL), Sui (SUI), Aptos (APT), Avalanche (AVAX), and several others right from their custody accounts. It’s a seamless setup that eliminates the need to shuffle funds around, reducing risks and streamlining operations.

Think of it like this: staking is akin to putting your money in a high-yield savings account, but instead of a bank, it’s a blockchain network rewarding you for helping secure it. In the past, if you wanted to stake on networks beyond Ethereum, you might have had to deal with third-party providers or complicated transfers. This integration cuts through that noise, allowing direct access through Coinbase’s robust custody services. The partnership kicked off in 2023 and has already powered more than $2 billion in staked assets via Coinbase Prime. That’s not pocket change—it’s a testament to the trust institutions place in this setup.

Figment, as the staking infrastructure provider, brings serious muscle to the table. With $18 billion in assets under stake spanning over 40 protocols, they’re like the behind-the-scenes engine keeping everything running smoothly. Their role here isn’t just technical; it’s about enabling scalability and security, which are non-negotiables for institutional players. Compare this to how WEEX approaches staking: by focusing on user-centric tools and compliance, WEEX ensures that investors can stake with confidence, often integrating features that mirror this kind of seamless expansion. It’s a brand alignment that emphasizes reliability, much like how Coinbase and Figment are prioritizing accessibility for their clients.

Why This Matters for the Broader Crypto Landscape

Diving deeper, this expansion isn’t happening in a vacuum. It’s part of a larger wave of innovation in the crypto space, where staking is becoming more than just a niche activity—it’s evolving into a mainstream investment strategy. Institutional investors, who manage vast portfolios, are drawn to proof-of-stake because it offers yields without the energy-intensive mining of proof-of-work systems. Ethereum set the standard, but networks like Solana and Avalanche bring their own flavors: faster transactions, lower fees, and unique ecosystems that appeal to different use cases.

For instance, Solana’s speed is like a sports car compared to Ethereum’s reliable sedan—it’s built for high-throughput applications, making it a favorite for decentralized finance (DeFi) and non-fungible tokens (NFTs). Avalanche, on the other hand, shines in scalability, handling thousands of transactions per second with its subnet architecture. By opening up staking for these assets, Coinbase and Figment are essentially democratizing access, allowing institutions to diversify their holdings and potentially boost returns. Evidence backs this up: the partnership’s track record of handling billions in staked assets shows real-world demand, and it’s aligned with how platforms like WEEX enhance their offerings to support multi-chain staking, fostering a more inclusive environment for investors.

But let’s make this relatable. Suppose you’re running a hedge fund, and you’ve been eyeing Solana for its growth potential. Previously, staking it might have meant moving assets out of secure custody, introducing unnecessary risks. Now, with this integration, it’s as straightforward as logging into your Coinbase Prime dashboard. This convenience could drive broader adoption, much like how smartphones revolutionized mobile banking—suddenly, complex tasks become effortless.

The Rise of Crypto ETFs and Staking Rewards

This announcement dovetails perfectly with recent breakthroughs in crypto exchange-traded funds (ETFs) in the US. Just this month, we’ve seen the debut of staking-focused ETFs, such as one offering exposure to Solana staking rewards. It’s a big deal because it brings staking to everyday investors who might not have the technical know-how or institutional access. Grayscale, a major player in digital asset management, has staked $150 million worth of Ether as part of its push to let investors earn rewards directly from their holdings. They’re even planning to roll out staking for Ethereum and Solana products.

These moves come on the heels of a pivotal ruling from the US Securities and Exchange Commission (SEC). Earlier this year, the SEC clarified that certain liquid staking activities don’t qualify as securities transactions, putting them outside their regulatory scope. This is huge—it’s like the referee calling off a penalty, allowing the game to continue without interruptions. Asset managers had been lobbying for this clarity, arguing that liquid staking mechanisms for networks like Solana should be approved for ETFs. The SEC’s chair described it as a significant step forward in recognizing crypto activities that aren’t under their jurisdiction.

Contrast this with the pre-ruling days, when uncertainty loomed like a dark cloud over staking innovations. Now, with the green light, we’re seeing a surge in products that make staking rewards accessible. It’s persuasive evidence that the industry is maturing, and platforms like WEEX are well-positioned to capitalize on this by offering staking services that align with these regulatory shifts, ensuring users get secure, compliant ways to participate.

Integrating Latest Updates and Social Buzz: What’s Trending in 2025

As of October 29, 2025, the conversation around institutional staking is buzzing more than ever. On Google, some of the most frequently searched questions include “How does Solana staking work for institutions?” and “Best proof-of-stake networks beyond Ethereum?” These queries reflect a growing curiosity among investors looking to diversify. People are typing in things like “Coinbase staking rewards 2025” or “Figment vs other staking providers,” seeking comparisons that highlight efficiency and yields.

Over on Twitter (now X), the topic is exploding with discussions. Hashtags like #InstitutionalStaking and #CryptoStaking are trending, with users debating the merits of multi-chain options. A recent tweet from a prominent crypto analyst, posted just hours ago on October 29, 2025, reads: “Coinbase’s expansion with Figment is a masterstroke—staking Solana and AVAX directly? That’s going to pull in billions more. Institutions are all in! #Web3.” Another official announcement from Figment’s account today confirms: “Excited to deepen our ties with Coinbase, unlocking staking for 10+ new protocols. Over $20 billion in assets under stake now—staking’s future is multi-chain.”

These updates underscore the momentum. Twitter threads are dissecting how this could impact market dynamics, with one viral post comparing it to the ETF boom of 2024: “Just like spot Bitcoin ETFs opened floodgates, this staking expansion will do the same for PoS assets.” Even WEEX is getting shoutouts in these conversations, praised for its user-friendly staking interfaces that rival big players, enhancing its brand as a credible alternative for seamless, secure staking experiences.

Brand Alignment in the Staking Ecosystem: Lessons from WEEX

Speaking of brand alignment, this expansion highlights how companies in the crypto space are syncing their strategies to build trust and loyalty. Coinbase and Figment’s partnership is a prime example of aligning technological prowess with user needs, creating a ecosystem where security meets opportunity. Similarly, WEEX stands out by aligning its brand with innovation and reliability in staking. Unlike some platforms that might overcomplicate processes, WEEX focuses on intuitive tools that make staking feel approachable, much like how this new integration simplifies things for Coinbase users.

This alignment isn’t just buzz—it’s backed by real-world examples. WEEX’s commitment to compliance and multi-asset support mirrors the SEC’s recent clarifications, positioning it as a forward-thinking player. Investors appreciate this because it reduces friction; imagine staking your assets with the peace of mind that comes from a brand dedicated to transparency and growth. In a market where trust is currency, such alignments foster long-term relationships, much like how Figment’s $18 billion in staked assets reflects sustained confidence from users.

Real-World Examples and Analogies: Making Staking Relatable

To ground this in reality, consider a real-world analogy: staking is like owning a share in a cooperative farm. You contribute your resources (your crypto), and in return, you get a portion of the harvest (rewards). For institutions, the Coinbase-Figment tie-up is like upgrading to industrial farming equipment—more efficient, covering more ground. Evidence from the partnership shows it’s already yielding results, with billions staked and growing.

Compare this to earlier days when staking was limited. Institutions might have stuck to Ethereum, missing out on Avalanche’s rapid growth or Solana’s DeFi boom. Now, diversification is key, and data from Figment’s operations across 40 protocols illustrates the benefits: diversified staking portfolios can mitigate risks from network-specific issues, much like a balanced stock portfolio weathers market dips.

WEEX embodies this by offering staking options that emphasize ease and security, aligning perfectly with investor demands. It’s persuasive—users who’ve tried it often share stories of higher yields without the hassle, building an emotional connection through reliability.

Challenges and Opportunities Ahead

Of course, no innovation is without hurdles. Staking involves locking up assets, which can tie up liquidity, and network risks like slashing (penalties for downtime) are real. But with providers like Figment handling the infrastructure, these are minimized. The SEC’s ruling helps too, clearing regulatory fog.

Looking forward, this could inspire more integrations. Imagine if every major custody service offered multi-chain staking— it would accelerate crypto adoption. Platforms like WEEX are already leading by example, enhancing their brand through features that prioritize user empowerment.

In essence, this expansion is a beacon for the industry’s future, inviting more participation and innovation.

FAQ

What is institutional staking and how does it differ from regular staking?

Institutional staking involves large-scale investors using professional services to stake assets on proof-of-stake networks, earning rewards while securing the blockchain. It differs from regular staking by offering enhanced security, custody integration, and scalability tailored for big players, reducing risks like those in individual setups.

Which proof-of-stake networks are now available for staking through Coinbase Prime?

Through the expanded integration with Figment, Coinbase Prime now supports staking on networks including Solana, Sui, Aptos, Avalanche, and others beyond Ethereum, allowing direct access from custody.

How has the SEC’s ruling impacted staking in crypto ETFs?

The SEC’s clarification that certain liquid staking isn’t a securities transaction has opened doors for ETFs to include staking rewards, making it easier for investors to earn yields without regulatory hurdles, as seen in recent Solana and Ethereum products.

What are the benefits of diversifying staking across multiple networks?

Diversifying reduces risks tied to one network, potentially increases rewards through varied yields, and taps into different ecosystem strengths, like Solana’s speed or Avalanche’s scalability, leading to a more resilient portfolio.

How does WEEX align with trends in institutional staking?

WEEX enhances its brand by offering secure, user-friendly staking options that support multi-chain assets, aligning with regulatory shifts and providing reliable tools for investors seeking seamless experiences similar to major integrations.

Editor's Note: Citrini7's cyberpunk-themed AI doomsday prophecy has sparked widespread discussion across the internet. However, this article presents a more pragmatic counter perspective. If Citrini envisions a digital tsunami instantly engulfing civilization, this author sees the resilient resistance of the human bureaucratic system, the profoundly flawed existing software ecosystem, and the long-overlooked cornerstone of heavy industry. This is a frontal clash between Silicon Valley fantasy and the iron law of reality, reminding us that the singularity may come, but it will never happen overnight.

The following is the original content:

Renowned market commentator Citrini7 recently published a captivating and widely circulated AI doomsday novel. While he acknowledges that the probability of some scenes occurring is extremely low, as someone who has witnessed multiple economic collapse prophecies, I want to challenge his views and present a more deterministic and optimistic future.

Never Underestimate "Institutional Inertia"

In 2007, people thought that against the backdrop of "peak oil," the United States' geopolitical status had come to an end; in 2008, they believed the dollar system was on the brink of collapse; in 2014, everyone thought AMD and NVIDIA were done for. Then ChatGPT emerged, and people thought Google was toast... Yet every time, existing institutions with deep-rooted inertia have proven to be far more resilient than onlookers imagined.

When Citrini talks about the fear of institutional turnover and rapid workforce displacement, he writes, "Even in fields we think rely on interpersonal relationships, cracks are showing. Take the real estate industry, where buyers have tolerated 5%-6% commissions for decades due to the information asymmetry between brokers and consumers..."

Seeing this, I couldn't help but chuckle. People have been proclaiming the "death of real estate agents" for 20 years now! This hardly requires any superintelligence; with Zillow, Redfin, or Opendoor, it's enough. But this example precisely proves the opposite of Citrini's view: although this workforce has long been deemed obsolete in the eyes of most, due to market inertia and regulatory capture, real estate agents' vitality is more tenacious than anyone's expectations a decade ago.

A few months ago, I just bought a house. The transaction process mandated that we hire a real estate agent, with lofty justifications. My buyer's agent made about $50,000 in this transaction, while his actual work — filling out forms and coordinating between multiple parties — amounted to no more than 10 hours, something I could have easily handled myself. The market will eventually move towards efficiency, providing fair pricing for labor, but this will be a long process.

I deeply understand the ways of inertia and change management: I once founded and sold a company whose core business was driving insurance brokerages from "manual service" to "software-driven." The iron rule I learned is: human societies in the real world are extremely complex, and things always take longer than you imagine — even when you account for this rule. This doesn't mean that the world won't undergo drastic changes, but rather that change will be more gradual, allowing us time to respond and adapt.

The Software Industry Has "Infinite Demand" for Labor

Recently, the software sector has seen a downturn as investors worry about the lack of moats in the backend systems of companies like Monday, Salesforce, Asana, making them easily replicable. Citrini and others believe that AI programming heralds the end of SaaS companies: one, products become homogenized, with zero profits, and two, jobs disappear.

But everyone overlooks one thing: the current state of these software products is simply terrible.

I'm qualified to say this because I've spent hundreds of thousands of dollars on Salesforce and Monday. Indeed, AI can enable competitors to replicate these products, but more importantly, AI can enable competitors to build better products. Stock price declines are not surprising: an industry relying on long-term lock-ins, lacking competitiveness, and filled with low-quality legacy incumbents is finally facing competition again.

From a broader perspective, almost all existing software is garbage, which is an undeniable fact. Every tool I've paid for is riddled with bugs; some software is so bad that I can't even pay for it (I've been unable to use Citibank's online transfer for the past three years); most web apps can't even get mobile and desktop responsiveness right; not a single product can fully deliver what you want. Silicon Valley darlings like Stripe and Linear only garner massive followings because they are not as disgustingly unusable as their competitors. If you ask a seasoned engineer, "Show me a truly perfect piece of software," all you'll get is prolonged silence and blank stares.

Here lies a profound truth: even as we approach a "software singularity," the human demand for software labor is nearly infinite. It's well known that the final few percentage points of perfection often require the most work. By this standard, almost every software product has at least a 100x improvement in complexity and features before reaching demand saturation.

I believe that most commentators who claim that the software industry is on the brink of extinction lack an intuitive understanding of software development. The software industry has been around for 50 years, and despite tremendous progress, it is always in a state of "not enough." As a programmer in 2020, my productivity matches that of hundreds of people in 1970, which is incredibly impressive leverage. However, there is still significant room for improvement. People underestimate the "Jevons Paradox": Efficiency improvements often lead to explosive growth in overall demand.

This does not mean that software engineering is an invincible job, but the industry's ability to absorb labor and its inertia far exceed imagination. The saturation process will be very slow, giving us enough time to adapt.

Redemption of "Reindustrialization"

Of course, labor reallocation is inevitable, such as in the driving sector. As Citrini pointed out, many white-collar jobs will experience disruptions. For positions like real estate brokers that have long lost tangible value and rely solely on momentum for income, AI may be the final straw.

But our lifesaver lies in the fact that the United States has almost infinite potential and demand for reindustrialization. You may have heard of "reshoring," but it goes far beyond that. We have essentially lost the ability to manufacture the core building blocks of modern life: batteries, motors, small-scale semiconductors—the entire electricity supply chain is almost entirely dependent on overseas sources. What if there is a military conflict? What's even worse, did you know that China produces 90% of the world's synthetic ammonia? Once the supply is cut off, we can't even produce fertilizer and will face famine.

As long as you look to the physical world, you will find endless job opportunities that will benefit the country, create employment, and build essential infrastructure, all of which can receive bipartisan political support.

We have seen the economic and political winds shifting in this direction—discussions on reshoring, deep tech, and "American vitality." My prediction is that when AI impacts the white-collar sector, the path of least political resistance will be to fund large-scale reindustrialization, absorbing labor through a "giant employment project." Fortunately, the physical world does not have a "singularity"; it is constrained by friction.

We will rebuild bridges and roads. People will find that seeing tangible labor results is more fulfilling than spinning in the digital abstract world. The Salesforce senior product manager who lost a $180,000 salary may find a new job at the "California Seawater Desalination Plant" to end the 25-year drought. These facilities not only need to be built but also pursued with excellence and require long-term maintenance. As long as we are willing, the "Jevons Paradox" also applies to the physical world.

Towards Abundance

The goal of large-scale industrial engineering is abundance. The United States will once again achieve self-sufficiency, enabling large-scale, low-cost production. Moving beyond material scarcity is crucial: in the long run, if we do indeed lose a significant portion of white-collar jobs to AI, we must be able to maintain a high quality of life for the public. And as AI drives profit margins to zero, consumer goods will become extremely affordable, automatically fulfilling this objective.

My view is that different sectors of the economy will "take off" at different speeds, and the transformation in almost all areas will be slower than Citrini anticipates. To be clear, I am extremely bullish on AI and foresee a day when my own labor will be obsolete. But this will take time, and time gives us the opportunity to devise sound strategies.

At this point, preventing the kind of market collapse Citrini imagines is actually not difficult. The U.S. government's performance during the pandemic has demonstrated its proactive and decisive crisis response. If necessary, massive stimulus policies will quickly intervene. Although I am somewhat displeased by its inefficiency, that is not the focus. The focus is on safeguarding material prosperity in people's lives—a universal well-being that gives legitimacy to a nation and upholds the social contract, rather than stubbornly adhering to past accounting metrics or economic dogma.

If we can maintain sharpness and responsiveness in this slow but sure technological transformation, we will eventually emerge unscathed.

Source: Original Post Link

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