Key facts
- SharpLink will stake $200 million of Ethereum through Lido's liquid-staking protocol.
- The staked ETH will be represented as wrapped staked ETH (wstETH).
- Anchorage Digital will provide custody services for the wstETH.
- This allocation is approximately 12% of SharpLink's total ETH holdings.
- The strategy aims to earn yield on ETH while maintaining liquidity for DeFi applications.
Miami-based digital asset treasury company SharpLink announced it will stake $200 million of Ethereum through Lido, the largest liquid-staking protocol on the network. The tokens will be received as wrapped staked ETH (wstETH), a receipt token representing staked ETH plus its rewards, and will be held in custody by Anchorage Digital.
Joseph Chalom, CEO of SharpLink, stated that this move is an exciting expansion to make their ETH more productive, leveraging wstETH's composability while maintaining institutional-grade risk standards. He added that partnering with Lido deepens their treasury strategy diversification and provides access to a liquid and widely integrated asset in Ethereum DeFi.
The wstETH token allows SharpLink to earn staking yield while remaining liquid and able to be used across decentralized finance (DeFi) protocols. The underlying ETH continues to accrue rewards, and the wstETH can be used as collateral or traded without the need to unstake the ETH.
Lido currently facilitates the majority of liquid-staked ETH, with approximately $16.5 billion staked through its protocol. SharpLink is recognized as one of the world's largest corporate Ethereum holders, and staking is a key component of its strategy. The firm's ETH holdings have grown to over 880,000 ETH, valued at roughly $1.68 billion earlier this year. This new allocation with Lido complements their existing staking and restaking activities.
Vasiliy Shapovalov of Lido Labs Foundation expressed enthusiasm for SharpLink's increased use of Ethereum native staking protocols and the DeFi ecosystem, viewing it as a bullish signal for major Ethereum-based applications. Kean Gilbert from Lido Institutional highlighted that treasuries are increasingly seeking to earn yield on their ETH without sacrificing liquidity, positioning Lido as the standard for this at scale.
This development occurs as more treasury firms are entering the market. Standard Chartered previously reported that treasury companies were buying a significant portion of ETH, with potential for further growth. Tom Lee's Bitmine, a major Ethereum corporate treasury, holds approximately $11 billion in Ethereum and aims to control a substantial share of the total supply.