Validation Cloud launches new staking platform for institutional investors
Validation Cloud, a web3 infrastructure platform, today unveiled its next-generation Staking-as-a-Service platform specifically designed for institutions. The launch follows closely on the heels of the company’s attainment of SOC 2 Type 1 Compliance just a month ago.
With this new platform, institutions can now deploy validators in bulk and automate rewards through smart contracts using this platform. Notably, the service is non-custodial, offering institutions flexibility in their staking activities.
The focus on SOC2 compliance is integral to Validation Cloud’s platform design. SOC2, or Systems and Organization Controls 2, is a voluntary standard that ensures high data security levels for companies. This standard adheres to five core principles: security, privacy, confidentiality, processing integrity, and availability, ensuring the protection of customer information.
“The company’s technology will be dramatically improving the speed, cost, and reliability of Ethereum validators through (1) UI and API-based deployments, (2) automatic rewards management, and (3) SOC2 compliance,” the Validation Cloud team said.
Validation Cloud simplifies staking by providing immediate on-demand Ethereum validators, eradicating the necessity for pre-provisioning and extended wait times. Their on-chain smart contracts streamline reward distribution, cutting out middlemen and lessening counterparty risks.
With its SOC2 compliance status, Validation Cloud places security at the forefront, establishing elevated standards for commercial compliance and data security among a limited number of compliant node and staking platforms. The company also ensures a uniform staking experience for ETH and various digital assets through its intuitive user interface.
Alex Nwaka, the chief strategy officer at Validation Cloud, explained that their solution is specifically tailored to meet the needs of institutional staking providers. The platform allows the on-demand staking of client assets and transparently splits rewards automatically on-chain, addressing the unmet requirements in this domain.
“Validation Cloud has developed our offering in response to the unmet needs of institutional staking partners, namely the ability to stake client assets on-demand and automatically split rewards transparently on-chain,” Nwaka said.
Nwaka highlights that these features can assist partners in scaling their staking programs while reducing administrative costs associated with non-custodial institutional staking. He also stressed the substantial market impact of institutional entry into the staking arena, predicting a substantial increase in staked assets and a significant shift in service provider needs, particularly in performance, scale, and compliance requirements.
“The market implications of institutions entering the staking space are massive — an exponential step change in the amount of assets being staked and a complete shift in service provider requirements, specifically performance, scale and compliance,” he added.
Launched in July 2022 by Validation Capital, Validation Cloud provides Staking and Node-as-a-Service, poised to revolutionize the multi-billion dollar blockchain sector. Based in Zug, Switzerland, Validation Cloud aims to shape the future of Web3 by offering highly robust, scalable infrastructure that grants accelerated access and elevated staking returns for the most crucial blockchain networks.