Galaxy Digital, the cryptocurrency trading company led by Mike Novogratz, is partnering with BitGo Trust to bring its blockchain staking capabilities to BitGo's institutional custody clientele. This deal allows investors to earn staking rewards while also using their assets as collateral for loans and trading on Galaxy's platform. This partnership comes despite an ongoing legal dispute between the two firms, in which BitGo filed a $100 million lawsuit against Galaxy for breaching a merger agreement. Both parties have expressed their commitment to strategic collaboration despite the legal proceedings. Staking, which involves locking up crypto tokens to support blockchain operations, is seen as a crucial component of the crypto industry and is expected to play a role in the US under President Donald Trump. Galaxy has been expanding its staking infrastructure and believes that being integrated with BitGo's custodial services will provide the best of both worlds. The arrival of a crypto-friendly US government raises the possibility of staking being included in exchange-traded funds (ETFs) for proof-of-stake tokens such as Ethereum's ether (ETH). However, managers of these funds need to consider the balance of liquidity risk when implementing staking.



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