Galaxy Digital has announced a new partnership with Liquid Collective aimed at expanding institutional access to liquid staking, starting with Ethereum and eventually covering Solana.
The collaboration followed a recent statement by the U.S. Securities and Exchange Commission (SEC) in May, which clarified that staking is not a security or an investment contract. This regulatory green light has opened the door for broader institutional participation in staking services.
OTC support for LsETH
Under the new agreement, Galaxy will provide over-the-counter (OTC) infrastructure and liquidity for the Liquid Collective staking token — LsETH.
The token allows Ethereum holders to participate in staking while maintaining liquidity — an important feature for institutions that require flexibility and capital efficiency.
Both companies confirmed that support for liquid staking of Solana (SOL) will continue, allowing institutional clients broader access to the blockchain through similar mechanisms.
Implementation of liquid staking in institutions
Liquid Staking is gaining momentum as it solves a key challenge for investors — earning staking rewards without locking up assets. As institutional players demand more sophisticated access to staking, the Galaxy OTC network combined with the Liquid Collective protocol offers an optimized and secure entry point.
This partnership highlights the growing maturity of staking infrastructure and reflects a broader trend of the intersection of traditional finance with decentralized ecosystems.
