Enables institutions to gain off-chain exposure to staking yield.
Measures annualised daily staking yield of Avalanche, Cardano, Cosmos, Polkadot, Solana.
London, Los Angeles – September 28, 2022 – CryptoCompare, the global leader in digital asset data and FCA-authorised benchmark administrator, and Blockdaemon, the leading institutional-grade blockchain infrastructure company for node management and staking, today announced the launch of their industry-first family of Staking Yield Indices which enable more informed and sophisticated investment strategies in a regulated and secure environment.
The CryptoCompare Blockdaemon Staking Yield Index Family is designed to measure the annualised daily staking yield generated by the digital asset, allowing institutional investors to create total return and yield swap products, benchmark portfolios, conduct research, and more. The Index Family will initially feature five regulated indices that capture the annualised daily staking yield of the top-performing PoS digital assets: Avalanche, Cardano, Cosmos, Polkadot, and Solana.
“The CryptoCompare Blockdaemon Staking Yield Indices have created a new standard for digital asset investment products, overcoming the limitations faced by traditional indices, which do not capture any staking rewards, generated by the underlying cryptocurrency,” said Charles Hayter, CEO and Co-Founder of CryptoCompare. “These new innovative indices remove this hurdle, opening the door for new market participants while giving investors a vehicle by which they can easily gain exposure to the opportunities provided by staking.”
Participants of Proof-of-Stake (PoS) blockchains delegate - or stake - their digital asset holdings to a validator node to further secure and strengthen a blockchain network while being rewarded with staking rewards for doing so. Currently, billions of dollars are staked across the digital asset ecosystem, which have been ignored by traditional index products until now.
“These indices further exemplify our ability to deliver new and innovative institutional solutions using our proven, widely adopted staking infrastructure,” said Konstantin Richter, CEO and Founder of Blockdaemon. “By utilising the CryptoCompare Blockdaemon Staking Yield Indices, pivotal real-time and historical data allows institutional investors and network participants to have access to crucial insights to make key performance-driven decisions.''
ETC Group, the leading institutionally focused digital asset manager in Europe, was a key driver of the development of this suite of independent benchmarks and will be the first to license the Staking Yield Index Family for a series of products planned for Q4 2022.
“We see this as a vital step to providing better access to institutional investors into the digital assets marketplace,” said Tim Bevan, ETC Group Co-CEO, adding, “Transparent, independent benchmark data provides the reference points required to navigate successfully and with confidence.”
The CryptoCompare Blockdaemon Staking Yield Index Family taps the proprietary yield calculation methodology of CC Data Limited for certain proof-of-stake digital assets. Each featured cryptocurrency has a unique yield calculation methodology and implementation. More information on the methodology can be found here.
The initial five indices are:
- CryptoCompare Blockdaemon Cardano Staking Yield Index
- CryptoCompare Blockdaemon Solana Staking Yield Index
- CryptoCompare Blockdaemon Avalanche Staking Yield Index
- CryptoCompare Blockdaemon Cosmos Staking Yield Index
- CryptoCompare Blockdaemon Polkadot Staking Yield Index
CryptoCompare is an FCA-authorised benchmark administrator and global leader in digital asset data, providing institutional-grade digital asset data and real-time and settlement indices. By aggregating and analysing tick data from globally recognised exchanges and seamlessly integrating multiple datasets, CryptoCompare provides a comprehensive and granular overview of the market across trade, derivatives, order book, historical, social and blockchain data. For more information, please visit https://data.cryptocompare.com.
Blockdaemon is the leading ISO-compliant, independent blockchain node infrastructure to stake, scale, and deploy nodes with institutional-grade security and monitoring. Supporting 60+ cutting-edge blockchain networks in the cloud and on bare metal servers globally, Blockdaemon is used by exchanges, custodians, crypto platforms, financial institutions and developers to connect commercial stakeholders to blockchains. We power the blockchain economy by simplifying the process of deploying nodes and creating scalable enterprise blockchain solutions via APIs, high availability clusters, auto-decentralisation and auto-healing of nodes. For more information, please visit https://blockdaemon.com/.