Galaxy and Liquid Collective Partner to Bring Compliant Ethereum Liquid Staking to Institutions
Galaxy and Liquid Collective have announced a strategic partnership aimed at giving institutional investors streamlined access to Ethereum liquid staking, in a move that underscores growing confidence in the regulatory landscape around crypto staking.
The announcement, made Tuesday, follows recent guidance from the U.S. Securities and Exchange Commission (SEC), which in May clarified that staking activities—particularly those involving "covered crypto assets" on proof-of-stake networks—do not qualify as securities or investment contracts. This shift has been widely viewed as a green light for compliant, third-party staking services.
Under the new partnership, Galaxy will offer over-the-counter (OTC) support for Liquid Collective’s staking token, LsETH. The token enables institutions to stake Ethereum while preserving liquidity—a key requirement for many larger investors. The two companies also plan to expand their offering to include liquid staking for Solana in the near future.
Liquid staking allows crypto holders to lock up their assets to support blockchain network security and earn rewards, while still maintaining access to those assets via a liquid token. Liquid Collective's LsETH is positioned as the only liquid staking token (LST) tailored specifically for institutions, with a focus on interoperability, decentralization, and compliance.
Galaxy will also serve as a node operator for the Liquid Collective network. The protocol, developed by Alluvial, currently manages more than $700 million in total value locked (TVL), according to decentralized finance tracker DeFiLlama.
“The future of staking hinges on robust, interoperable solutions that provide not just yield, but true liquidity and utility,” said Zane Glauber, Galaxy’s Head of Strategic Opportunities.
Mara Schmiedt, CEO of Alluvial and co-founder of Liquid Collective, emphasized that the partnership comes at a pivotal moment.
“With recent regulatory tailwinds and institutional demand on the horizon, this partnership with Galaxy meaningfully advances our mission to deliver secure, accessible and liquid staking to the mainstream market,” she said.
Liquid Collective is backed by a consortium of major players in the crypto ecosystem, including Coinbase, Kraken, BitGo, Blockdaemon, and Anchorage Digital. Galaxy’s participation further strengthens that lineup, adding deep institutional expertise and infrastructure support.
This collaboration reflects a broader trend of maturing crypto infrastructure, where services once limited to retail users are now being adapted for the requirements of regulated, institutional markets.