of the US Securities and Exchange Commission (SEC) prominent cryptocurrency Liquid staking protocols tokens rallied after the exchange filed a lawsuit against Kraken to cease staking services.
However, while this rise attracted the attention of some crypto investors, some investors were not interested in this rise.
As reported by Coindesk, David Cicoria, Head of Markets Technology at Asia-focused Hex Trust, said that Asian institutional investors are not interested in the rise of liquid staking tokens.
“Enterprise clients were not very interested in liquid staking of assets, ie liquid staking tokens.
The only concern we see with such assets is that customers or the public cannot access local staking of a particular token.”
David Cicoria stated that behind this indifference are some risks such as depegging, hacking risk, centralization concerns and lack of regulatory clarity.
Referring to the SEC’s final quarterback against the Kraken exchange, Cicoria continued:
“Liquid staking protocols and tokens belong to decentralized finance (DeFi) and are not considered securities from a protocol or asset perspective.
But regulators’ moves seem far from achieving the legal status they deserve.”
Finally, Cicoria added that local staking, also known as direct staking, is a form of staking that attracts Asian institutional investors.
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