Banks acting as validators risks centralization — Everstake exec
March 12 2025 - 5:35PM
Cointelegraph
New US regulatory guidance allowing banks to become validators
for blockchain networks is a major step for institutional adoption
but worsens centralization risks, Bohdan Opryshko, chief operating
officer of staking service provider Everstake, told
Cointelegraph.
On March 7, the US Office of the Comptroller of the Currency
(OCC)
eased its stance on how banks can engage with crypto, including
permitting banks to participate “in independent node verification
networks,” the regulator said.
Opryshko said US banks’ increased involvement in proof-of-stake
(PoS) networks, such as Ethereum and Solana, could be a
“double-edged sword.”
“If banks become dominant validators, power could become
concentrated, reducing the decentralized nature of PoS networks,”
Opryshko told Cointelegraph on March 12.
The additional financial inflows into PoS networks could also
suppress staking yields, potentially undermining smaller
validators, he added.
“If major institutional players, such as banks, enter the
staking market and suddenly stake large amounts, […] it could cause
a sharp reduction in staking rewards for all other participants,”
Opryshko said.
Staking yields as of March 12. Source:
Staking Rewards
Related:
OCC lays out crypto banking after Trump vows to end
Operation Chokepoint 2.0
As of March 12, Ether stakers earn approximately 5.5% APR, and
Solana stakers earn close to 8%, according to data from
Staking Rewards.
Staking involves securing blockchains by posting crypto as
collateral with validators in exchange for rewards.
Debanking debacle
The OCC’s announcement came after US President Donald Trump
vowed to end a prolonged regulatory crackdown that restricted
crypto firms’ access to banking services.
Crypto industry outrage over so-called “debanking”
reached a crescendo when a June 2024 lawsuit spearheaded by
Coinbase resulted in the release of letters showing US banking
regulators asked certain financial institutions to “pause” crypto
banking activities.
In a Jan. 23 executive
order, Trump — who has vowed to make America the “world’s
crypto capital” — told agencies to prioritize “fair and open access
to banking services” for digital asset firms.
As of March 12, Anchorage Digital is the only federally
chartered US bank to offer cryptocurrency staking.
Magazine:
SEC’s U-turn on crypto leaves key questions
unanswered
...
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centralization — Everstake exec
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Banks acting as validators risks centralization —
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