It’s no secret that the crypto narrative in 2024 has centered around institutional adoption. We started off the year strong in January with the Bitcoin ETF, which had historic inflows, and the momentum continued with the launch of the Ethereum ETF in late July.
While these are significant milestones for our industry, both of these products are missing one thing: yield that scales. Yield is essential for the growth of DeFi. Without it, tens of billions of dollars in capital would not be utilizing liquid staking solutions, lending/borrowing protocols, decentralized exchanges, and numerous other DeFi applications.
Dinero and pxETH
At Dinero, we understand the importance of yield. This is evident in everything we do, from accumulating yield-generating DeFi assets for our treasury, to launching Hidden Hand for governance token incentives, and creating pxCVX to simplify vlCVX usage.
After seeing an opportunity to leverage our expertise in the liquid staking vertical, we launched pxETH, a DeFi-native product optimizing yield across the risk curve. We do this by giving users a choice: DeFi farmers can forgo their ETH staking yield to farm protocols like Balancer and Curve and risk-averse users can stake their pxETH as apxETH to earn a boosted ETH staking yield. Due to this approach, pxETH has remained the highest yielding ETH LST (~9% APR on average) since its launch late last year.
The Institutional Opportunity with ipxETH
Despite pxETH’s edge from a yield perspective, we knew that the liquid staking vertical was competitive. Recognizing this, we identified another user base that needs access to ETH staking yield: the suits. That’s when the long journey to find partners and build ipxETH began.
ipxETH scales the design of staked ETH for institutional use, offering a compliant entry point into what will be the highest-yielding Ethereum staking product for accredited investors.
Unlike other institutionally accessible Ethereum products, ipxETH is purpose-built to meet the needs of opportunistic institutions who are apt-enough not to leave carry on the table, by addressing the demand for staking yield without the complexities typically associated with DeFi. Not only that, but Dinero’s design also allows users to earn higher than the average staking yield – making it more competitive than any and every currently available market access product.
As highlighted by Bloomberg, we collaborated with Laser Digital Asset Management and Galaxy to ensure that ipxETH meets the highest standards, providing institutional investors with the confidence to participate in our industry.
By bridging the gap between DeFi's yield opportunities and institutional compliance requirements, ipxETH is set to attract a new wave of market participants, including registered investment advisors (RIAs) and brokers. This innovation not only enhances yield opportunities but also expands the accessibility and appeal of DeFi to a broader institutional audience.
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About Galaxy:
Galaxy (TSX: GLXY) is a digital asset and blockchain leader providing access to the growing digital economy. We serve a diversified client base, including institutions, startups, and qualified individuals. Since 2018, Galaxy has been building a holistic financial platform spanning three complementary operating businesses: Global Markets, Asset Management, and Digital Infrastructure Solutions. Our offerings include, amongst others, trading, lending, strategic advisory services, institutional-grade investment solutions, proprietary bitcoin mining and hosting services, network validator services, and the development of enterprise custodial technology. The company is headquartered in New York City, with global offices across North America, Europe, and Asia. Additional information about Galaxy's businesses and products is available on www.galaxy.com.