Financial news

RockX launches Ethereum liquid staking platform compliant with anti-money laundering (AML) and know-your-customer (KYC) regulations.

The Singapore-headquartered blockchain node network, RockX, has debuted its Ethereum liquid staking platform Bedrock.

The decentralised platform supports a non-custodial, on-chain and independent liquid staking solution able to adhere to regulatory requirements incurred by large-scale staking processes.

This includes built-in KYC/AML processes to verify clients staking more than 32 ETH while retaining the flexibility of anonymity for retail stakers.

The conventional process of staking cryptocurrency typically sees users lock in tokens as a pledge towards the development of the blockchain with the advantage of earning staking yield in the process. However, the downside of doing this is that the staked tokens become inaccessible.

On the contrary, the liquid staking alternative enables users to instead receive a new token in place of their staked tokens, representing their claim to the underlying staking and its yield, enhancing their capital efficiency.

UniETH, also known as universalETH, represents Bedrock’s token for staked Ether and the platform supports a design to accommodate liquid staking solutions for more proof-of-stake blockchains in the future.

On this note, following the platform’s debut, Bedrock has confirmed its future intention to incorporate distributed validator technology into the platform, including open source protocols which decentralise the duties of many staking validators.

The implementation of this distributed validator technology will allow stakers to collectively split validator keys required for staking between unrelated and even untrusted nodes; a win for decentralisation, fault tolerance and the overall health of the blockchain.

Zhuling Chen, CEO and founder of RockX, says that with the compliance, transparency and security features incorporated into its design, “Bedrock was designed to help bring greater capital efficiency for institutions exploring staking.”

“Using our validator technologies, we now have a decentralised solution that can usher in a new age of staking for institutions,” adds Chen.

Bedrock welcomes first institutional client

In conjunction with its launch, RockX is also announcing the platform’s first institutional client in the Amber Group; a digital asset manager and the platform’s lead investor.

“We are excited about the opportunities with Bedrock that helps to address many of the pain points felt by institutional clients looking to get into crypto staking,” comments the Group’s managing partner, Annabelle Huang.

“Bedrock can help to bring about new levels of transparency and security into the staking industry, which will lead to greater professionalisation and acceptance of crypto in financial markets,” continues Huang.

Recent developments in the global staking market have raised some uncertainty over the regulatory responsibilities of cryptocurrency companies. Current liquid staking solutions do not address the deep liquidity needs, transparency, security and compliance standards required for institutional liquid staking.

Bedrock was developed to fill this void in the market, addressing institutional clients’ needs for greater capital efficiency when staking assets while still adhering to many of the regulations surrounding decentralised finance.