Web3 infrastructure platform Validation Cloud has launched a staking-as-a-service platform for institutions.
The platform allows institutions to deploy validators in bulk and earn rewards through smart contract automation. Institutions can deploy on-demand and the platform is non-custodial.
Validation Cloud has designed its platform to be SOC2 compliant. SOC2, which stands for Systems and Organization Controls 2, is a voluntary compliance standard defined by the American Institute of Certified Public Accountants.
The framework is designed to maintain high data security standards for businesses and ensure that customer information adheres to five principles: security, privacy, confidentiality, processing integrity and availability.
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Alex Nwaka, Validation Cloud’s chief security officer, told Blockworks that Validation Cloud had tailored its solution to the requirements of institutional staking providers.
“Validation Cloud developed our offering in response to the unmet needs of institutional staking partners, namely the ability to stake customer assets on-demand and automatically split rewards transparently across the chain,” said Nwaka.
He notes that these features can enable their partners to scale up staking programs while minimizing the administrative costs associated with non-custodial institutional staking.
“The market implications of institutions entering the staking space are enormous – an exponential step change in the amount of assets deployed and a complete shift in service provider requirements, especially performance, scale and compliance,” he said.