Alluvial’s Chief Product Officer, Matt Leisinger, talks about how liquid staking affects the world of cryptocurrency in an interview with Cointelegraph.
Elisha Owusu Akyaw interviews Matt Leisinger, the Chief Product Officer at Alluvial, a software development company. They talk about crypto staking and how it can attract institutional investors. Leisinger also discusses the Liquid Collective protocol and his predictions for the future of Ethereum staking after the Shanghai upgrade. Additionally, the article mentions that Ether’s ticker value decreased by $1,900.
Matt Leisinger worked in traditional finance before switching to cryptocurrency trading in 2016. He invested in the Ethereum ecosystem and helped create projects that offer liquid staking services. Liquid staking allows users to stake assets on the blockchain and receive a receipt token representing their staked assets. This receipt token helps maintain liquidity while users earn rewards and keep the network secure.
As more institutions invest in cryptocurrency, some want to add staking to their portfolio. Leisinger says that most of these firms would prefer liquid staking, but there are some issues to resolve first. These include problems with Know Your Customer and Anti-Money Laundering requirements, transparency, tokenholder privileges, and counter-party risks. However, Alluvial has a solution for companies to address these problems and speed up adoption.
Leisinger thinks that Alluvial and similar companies really need clear regulations. He explains that there are two types of staking: direct staking and actively managed staking. Both have different regulatory implications related to token ownership, security, and transparency. Leisinger believes that liquid staking is better equipped to handle regulatory scrutiny because it is more transparent.
