Recent regulatory changes in various countries have prompted some registered crypto exchanges to adjust their staking services for retail investors. These changes can vary significantly from one jurisdiction to another, with some being more restrictive than others.
For example, in Singapore, exchanges like Coinbase are no longer allowed to offer staking services to retail users who keep their tokens with them. Instead, only accredited investors are able to use these services to earn yield on the tokens that they hold on these exchanges.
With our recent acquisition of Stakewithus, a non-custodial staking service, we're proud to offer both retail and accredited investors direct access to a diverse range of staking opportunities for over 20 assets, including SOL, SUI, and TIA, while adhering to local regulations in various jurisdictions.
In this blog post, we'll cover some developments relevant to crypto staking, explain how you can use Nansen to stake your tokens (where permitted by local laws), and highlight viable alternatives for assets we don't currently support.
Understanding the Crypto Staking Landscape
Before exploring how Nansen can support you with our staking services, users should be aware of and understand the evolving regulatory landscape for crypto staking worldwide and especially in their home jurisdiction.
What is Staking?
Staking involves locking up cryptocurrency to support a blockchain network's operations and security. In return, stakers can earn rewards in the form of staking yield offering additional tokens.
Crypto staking can be custodial or non-custodial. Custodial staking requires crypto holders to transfer their tokens to a staking platform, while non-custodial staking lets you keep your staked tokens in your own wallet.
The regulatory approach to staking varies significantly between countries:
- Restrictive approach: Some countries have restricted custodial service providers from offering staking services to retail customers. For example, in Singapore, such restrictions are motivated by concerns that without custody of their own tokens, retail customers would not be able to control how their tokens are staked by the exchange they use, and may be exposed to risks of losses.
- Moderate or open approach: In contrast, other jurisdictions have not directly restricted service providers from offering staking services to users. For example, Hong Kong is developing a licensing regime for virtual asset service providers, which currently does not include staking activities. However, regulations may evolve to encompass such activities as the crypto staking landscape develop. Similarly, the UK is exploring regulatory clarity for staking, indicating that it recognizes the importance of distinguishing between different types of crypto activities.
How to Stake Your Crypto with Nansen
We recently acquired Stakewithus, a leading non-custodial staking service provider which now has over $130m in assets staked by 30,000+ users, supporting a wide range of networks on performant node infrastructure since February 2019.
Staking with Nansen is easy as 1-2-3:
- Visit stake.nansen.ai
- Explore the range of assets available to find the token you want to stake (20+ with more coming soon!)
- Tap "Stake" on your asset of choice, connect your wallet and enter the amount you want to stake, then confirm the transaction.
We told you it was easy!
For Institutional Investors seeking customized staking solutions tailored to specific needs, please contact us at stake@nansen.ai
But why stake with Nansen?
Apart from StakewithUs’s track record, Nansen is no stranger to the crypto staking landscape.
We have been a trusted validator for Ronin since 2022. Since then, we have grown to become the third most popular governing validator, with over $20m staked across nearly 10,000 wallets and 99.97% uptime!
We’re proud of our track record. But if that doesn't convince you, here are some more reasons:
- Non-Custodial: Only you, not us, have access to your funds. The way it should be.
- Competitive Rewards: Put your crypto to work and earn an attractive yield. The yield will vary between assets, and the APY offered is after our small fee for providing this service.
- Dependable: Validators that you can rely on with an average 99.9% uptime across all supported networks.
- BONUS NSN Points Program: Earn NSN Points retroactively for staking, which will soon be redeemed for exclusive benefits.
What are NSN Points?NSN Points are Nansen's loyalty rewards program. Users earn points for staking, which can be redeemed for premium features, discounts, or other exclusive benefits. Learn more in Nansen's FAQ.
With Nansen you can stake over 20 assets, and we are already working on supporting even more for you!
Here are some of the assets that you can stake with Nansen, in order of Total Value Locked at the time of writing:
- SUI (Sui)
- RON (Ronin)
- TIA (Celestia)
- SOL (Solana)
- ATOM (Cosmos)
- BAND (Band Protocol)
- SKL (Skale)
- AKT (Akash)
- KAVA (Kava)
- DYDX (dYdX)
For a full list, visit stake.nansen.ai.
If there is an asset that you want to see on stake.nansen.ai, please email us at stake@nansen.ai
Staking Alternatives for Crypto Enthusiasts
Liquid Staking (Lido, Rocketpool, etc)
In the case of ETH staking, you would need to stake a significant amount in the form of 32 ETH to run your own validator, in addition to ensuring high uptime and infrastructure requirements. This high capital requirement and inconvenience of running your own validator can be daunting.
For users who wish to explore decentralised non-custodial solutions, liquid staking can be an option which lowers this barrier by enabling anyone the option to stake any amount of ETH and earn rewards. Options available include Lido and RocketPool.
Native Wallet Staking
Most major crypto wallets offer a direct route to stake assets directly within their app. For example, MetaMask and Coinbase Wallet offer ETH staking. Other wallets offer staking for different tokens, such as Phantom for Solana, Petra for Aptos, and Sui Wallet for Sui.
Key Considerations When Choosing a Staking Solution
When choosing a staking platform, it's crucial to evaluate your options to ensure that your choice meets your required needs.
Some key areas to consider are:
Security and Risk Management
The safety of your funds should always be your upmost priority. Research how your funds are protected when choosing between different options, for example, whether your staking provider is non-custodial (you have control) or custodial (someone else has control), the staking provider’s track record (uptime, no history of slashes) as well as the risks of engaging with decentralised platforms (absence of user support).
Rewards
Staking your crypto allows you to earn on your assets. However, the yield offered will vary between staking providers. This may be due to different rates or fees taken by the staking provider (which may or may not be transparent), and how often rewards are claimed or distributed.
Assets available to stake
Many investors in crypto have more than one asset that they may want to stake. Choosing a platform that offers a wide range of assets may be helpful in reducing decision fatigue and fragmentation of where your tokens are staked with.
The Future of Staking Globally
The cryptocurrency landscape is subject to ongoing regulatory changes worldwide. These changes may affect the availability of certain services, including staking services, from various providers in different jurisdictions. It's important for investors to stay informed about current regulations in their location and to carefully evaluate options for their assets.
When it comes to staking, we suggest you visit stake.nansen.ai to take a closer look, but we appreciate that there are different options available that may be better suited to your needs.
Join the 30,000+ users, with over $130m staked already using Nansen. Start staking now.