ETH price declines, but institutions migrate to Ethereum staking, says Lido executive.
The price of Ether significantly underperformed in 2025, but institutional demand for Ethereum staking is growing, says Kean Gilbert from the Lido Foundation.
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Ether has significantly underperformed Bitcoin and other digital assets in this market cycle, but growing institutional interest in Ethereum staking is driving demand for custody solutions that cater to a broader range of investors, according to Kean Gilbert, head of institutional relations at the Lido Ecosystem Foundation.
On May 27, Komainu, a regulated digital asset custody provider, began offering custody support for the Lido Staked ET.
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Custody solutions are available for institutional investors in Dubai, United Arab Emirates, and Jersey, a self-governing British Crown dependency.
The product offers a regulation-compliant way to access the returns from Ethereum staking at a time when more institutional investors are diversifying into digital assets.
“Many asset managers, custodians, family offices, and native crypto investment firms are actively exploring staking strategies,” said Gilbert in an interview with Cointelegraph.
At the same time, exchange-traded fund (ETF) issuers in the United States are awaiting regulatory clarity to launch Ethereum staking ETFs.
Despite Ether's weak performance, “institutions find liquid staking tokens like stETH useful because they directly address challenges related to capital immobilization and complex custody arrangements,” Gilbert stated.
According to him, tokens like stETH offer immediate liquidity and are compatible with qualified custodians such as Komainu, Fireblocks, and Copper.
