NYDFS Licensed Standard Custody Brings Solana Staking to Institutions

Standard Custody & Trust Company, a New York-based custodian for digital assets, has added Solana (SOL) to its crypto offering and offers institutional investors the ability to custody and hold the world’s sixth largest cryptocurrency.

Starting Wednesday, institutional investors will have the opportunity to interact directly with Solana’s fast-growing ecosystem via segregated and on-chain accounts. The company announced that it will also provide custody services for Solana program library tokens, which is a collection of on-chain programs.

Standard Custody launches support for Solana to meet growing institutional demand for SOL, which has grown exponentially since the start of the year. Earlier this week, SOL briefly overtook Cardano (ADA) and Tether (USDT) and became the fourth largest cryptocurrency by market capitalization.

Standard Custody’s CEO Jack McDonald attributed Solana’s recent growth to non-fungible tokens and decentralized finance – two of the blockchain’s largest and most lucrative use cases. Solana’s presence in both sectors has increased dramatically in recent months.

Institutional exposure to the cryptocurrency sector has increased significantly over the past year, signifying a critical shift in how traditional investors view digital assets. Since the introduction of Bitcoin (BTC) futures in December 2017, the crypto sector has delivered institutional onramps to trading platforms, secure custody solutions and new product offerings such as exchange-traded products, micro-futures and, more recently, exchange-traded funds.

Related: Institutional managers bought $ 2 billion worth of Bitcoin in October

Companies like Coinbase, Microstrategy and Riot Blockchain also play an important role in attracting institutional investors to crypto. As institutional capital continues to flow into digital assets, publicly traded companies with direct exposure to the sector have emerged as viable gateways for traditional investors.

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