In the recent episode 18 of Cointelegraph’s podcast called “Hashing It Out,” Elisha Owusu Akyaw, a podcast host, interviewed Matt Leisinger, the chief product officer at Alluvial. Alluvial is a software development company that supports the implementation of the Liquid Collective protocol. He shared his insights on the world of crypto staking and opined on the potential to attract institutional investors.
Leisinger started his career in the traditional finance sector and shifted to trading cryptocurrencies in 2016. He invested in the Ethereum ecosystem and contributed to projects that provide liquid staking services. He defined liquid staking as a process that allows users to stake assets on the blockchain and mint a receipt token representing the staked assets. It maintains the liquidity of staked assets, allowing users to earn rewards and secure the network simultaneously.
As institutional investment in cryptocurrency is rising, some institutions are looking to add staking to their portfolio. According to Leisinger, most firms would prefer liquid staking if tackled by hurdles like Know Your Customer and Anti-Money Laundering requirements, transparency, tokenholder privileges, and counter-party risks. He also said Alluvial provides a solution for enterprises by dealing with hurdles and slowing down adoption rates.
Regarding regulations, Leisinger mentioned that companies like Alluvial want regulatory clarity. He stated that there are two types of staking: direct staking and actively managed staking, each with different implications from a regulatory perspective around token ownership, security, and transparency. Leisinger believes liquid staking is better positioned to withstand regulatory pressure due to its transparency.
However, Leisinger admits that a lack of regulatory clarity has had a chilling effect on institutional staking. Despite this, the Alluvial executive is optimistic that new milestones like the Ethereum Shapella upgrade will reduce risks for staking and attract more interest.
The latest episode of “Hashing It Out” with Leisinger is available on Apple Podcasts, Spotify, Google Podcasts, or TuneIn. Users can also explore Cointelegraph’s comprehensive lineup of informative podcasts on the Cointelegraph Podcasts page.
Liquid staking is indeed a revolutionary approach that provides liquidity and scalability to blockchain networks. The traditional staking requires a lock-up period, and tokens cannot be used for other purposes, but with liquid staking, tokens could be traded and liquidated to meet any urgent financial requirements. Such flexibility is attractive to institutional investors who prioritize liquidity and risk management. With the increasing trend of institutional adoption, the demand for liquid staking is projected to increase, promoting the overall growth of the blockchain industry.
In conclusion, Matt Leisinger’s take on liquid staking and institutional adoption presents valuable information about the cryptocurrency space. The podcast interview highlights the challenges and opportunities involved in staking crypto assets. Leisinger’s insights on how liquid staking allows for more flexibility and reduced risks for investors have significant implications for the future of blockchain technology.
