BitGo has announced a partnership with SOL Strategies Inc., a Canadian firm specializing in Solana infrastructure.
The collaboration aims to provide institutional clients with enhanced staking services on the Solana blockchain.
The crypto staking is a very different process to the crypto lending, process where cryptocurrency holders delegate their tokens to validators—entities responsible for verifying transactions and maintaining the blockchain’s integrity. In return, participants earn rewards. For custodians like BitGo and Coinbase, partnering with reliable validators is crucial to offer clients secure and staking opportunities.
SOL Strategies brings to the table ISO-27001 certified validators, known for high performance and reliability. Their infrastructure ensures that institutional clients can stake Solana (SOL) tokens confidently, leveraging BitGo’s custody solutions.
However, staking isn’t without risks. One significant concern is “slashing,” where validators are penalized for malicious activities or operational failures, leading to potential losses for those who delegated their tokens. Additionally, staked assets are typically locked for a period, limiting liquidity and exposing investors to market volatility.
