According to Blockworks, Web3 infrastructure platform Validation Cloud has introduced a staking-as-a-service platform designed for institutions. This platform allows institutions to deploy validators in bulk and earn rewards through smart contract automation. It offers on-demand staking and is non-custodial. Validation Cloud has ensured its platform is SOC2 compliant, a voluntary compliance standard defined by the American Institute of Certified Public Accountants, which upholds high data security standards for companies based on five principles: security, privacy, confidentiality, processing integrity, and availability.
Alex Nwaka, the chief security officer of Validation Cloud, stated that the company developed its solution to address the unmet needs of institutional staking partners, such as the ability to stake client assets on-demand and automatically split rewards transparently on-chain. Nwaka believes these features can help partners scale staking programs while minimizing administrative costs associated with non-custodial institutional staking. He also highlighted the significant market implications of institutions entering the staking space, including an exponential increase in the amount of assets being staked and a shift in service provider requirements, specifically performance, scale, and compliance.
