Key Takeaways:
- Institutional-grade staking: Gemini Custody now supports Solana (SOL) staking for Exchange Traded Funds (ETFs), corporations, and High-net-worth individuals (HNWIs)
- Validator freedom: Clients can choose Gemini’s validator or bring their own
- Major partners: Includes Canada’s $24B Purpose Investments and Nasdaq-listed decentralized finance (DeFi) Development Corp
- Market impact: SOL price rose 8% post-announcement to $145
The Institutional Floodgates Open
While retail investors have staked Solana (SOL) for years, Gemini has just turned on the faucet for the institutions. The Winklevoss-led exchange announced an institutional Solana staking service through its qualified custody service, offering bank-level asset security with yields above 6% APY.
Gemini Institutional X account posted:
This isn’t your cousin’s Phantom wallet staking, if you are asking; this will act like a pension-fund-level asset segregation with multisig cold storage.
Why This Changes the Game
Gemini’s innovative Solana staking service effectively tackles three substantial difficulties that had prevented institutional participants from launching: New York State Department of Financial Services (NYDFS)-regulated custody supports regulatory certainty for risk-averse funds, validator choice flexibility (in comparison, Coinbase has locked funds into its custody+validator model), and seamless yield integration powers Canada’s first physical SOL ETF (SOLL).
Furthermore, the service’s credibility received a massive endorsement from anchor client DeFi Development Corp (DFDV), a Nasdaq-listed company that recently raised $5 billion for Solana treasury strategies, signaling corporate SOL flowing. F
By coupling institutional-grade security with blockchain-native yield opportunities, Gemini is not simply providing staking; they are building the onramp for traditional finance’s migration to proof-of-stake assets.
The ETF Connection
Purpose Investments’ SOLL ETF (Toronto: SOLL) will now auto-compound staking rewards – a first for Canadian crypto funds. This could turn SOL from a speculative asset into a yield-bearing instrument for institutional portfolios.
The move comes as:
- $85M bridged to Solana last week
- TVL hits $11.3B despite FTX estate sell-offs
- SOL ETF odds at 95% per Bloomberg analysts
What the Market Says
SOL’s 8% price jump reflects growing institutional confidence, but the real test comes next:
- More corporate treasuries: Watch for Fortune 500 announcements
- U.S. ETF filings: Purpose’s Canadian success could pressure SEC
- Validator wars: Institutions may back ecosystem-critical validators
The Staking Infrastructure Race Heats Up
Gemini’s play is not just about SOL; it’s a model for how regulated crypto yield can influence corporate balance sheets. With Coinbase/Fidelity scrambling to match these features, there’s no disputing one thing: staking is no longer a degens-only proposition.
Final thought: How does this compare to Ethereum staking? More flexible (no lock-up periods) but still delivers steady yield that’s optimal for active treasury management.
For more institutional SOL-related news, read: Solana ETF Showdown: Eight Firms Sprint Toward SEC Approval
