NorthStake, a cryptocurrency staking platform designed for institutional investors, has raised 2.8 million euros ($3 million) from PreSeed Ventures, Morph Capital, The Aventures Fund, Funfair Ventures, and Delta Blockchain Fund. NorthStake simplifies the process of staking crypto, which involves posting collateral to a blockchain network in return for yield, in a regulatory-compliant manner. Kavita Gupta, founder of Delta Blockchain Fund and an adviser to NorthStake, said: “At Delta, we are bullish on institutional staking services as it allows them to realize the full potential of holding crypto by earning passive income, supporting the network, and holding tokens beyond just having them sit as the speculative asset on the balance sheet.”
NorthStake CEO Jesper Johansen noted that there is great interest from financial institutions to get involved in staking crypto, particularly now that Ethereum has transitioned to a proof-of-stake consensus system. NorthStake is focused on vanilla staking products, as opposed to complex decentralized staking protocols, in order to keep compliance in mind. This is due to the AML risks associated with not knowing who a staking counterparty is, or what type of funds are being funneled through smart contracts.
The Copenhagen-based company has seen over $80 million in crypto assets staked in 2022, and is now courting interest from sovereign wealth funds and the like. NorthStake has partnered with custody technology firm Fireblocks and blockchain analytics provider Chainalysis to ensure the process is kept compliant.