TradFi firms embrace staked Ether with insurance

Traditional finance firms are increasingly viewing staked Ether (ETH) as a legitimate institutional yield asset, moving beyond its speculative crypto origins. This shift is driven by new insurance-backed staking products and standardized benchmarks like the Composite Ether Staking Rate (CESR). These innovations mitigate risks such as slashing and operational failures, which previously deterred cautious institutions. By offering defined, underwritten exposure, these products resemble familiar financial instruments like insured bonds, making staked ETH more palatable for existing risk frameworks and compliance requirements. This development allows for the creation of structured products like capital-protected notes and yield-enhanced strategies, integrating ETH into broader financial markets.