This network upgrade will connect its mainnet to the Beacon Chain's PoS system
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Anchorage Digital announced on Tuesday that they will be making Ethereum (ETH) stakes available to institutions. The firm is a digital platform that owns the first federally authorised crypto bank, based in San Francisco. This action is in anticipation of the ETH network's long-awaited transition from the PoW (proof-of-work) protocol to the PoS (proof-of-stake) protocol.
Anchorage revealed its aim to implement ETH staking for institutions, which is a process of receiving incentives for functioning as a transaction validator in the Ethereum network. Anchorage Digital co-founder and president Diogo Mónica described staking as a win-win situation for institutional investors and the ecosystem.
He added, “By paving the way for institutions to stake their Ethereum, we’re providing heightened legitimacy to market-tested assets—and in the process, eliminating any hot wallet risks for institutions looking to generate new earnings from crypto.”
The statement comes in the wake of predictions that "the Merge” - the long-delayed update that would transition the Ethereum blockchain from a PoW consensus mechanism to a PoS consensus mechanism, could be completed in the coming months.
The switch to PoS, which is projected to be speedier and more energy-efficient than PoW, is now scheduled for August. Following the Merge, validators would receive not just block rewards but also transaction priority fees, which had previously been paid to miners.