Blockdaemon Blog

Cold Staking - Enjoy the Benefits of Staking and Cold Storage Seamlessly

Daemon News
Jun 11, 2024

Cold Staking - Enjoy the Benefits of Staking
and Cold Storage Seamlessly

Staking supports Proof of Stake operations and secures rewards for institutions. These institutions prefer holding digital assets in cold storage rather than online. 

Blockdaemon Institutional Wallet combines these capabilities with the introduction of cold staking support. Stake and unstake directly from your air-gapped cold wallet without bringing your private keys online.

Cold Staking Maximizes Security

With ETH recently approaching values of $4000, staking 32 ETH can quickly add up, particularly for institutions. These large deposit requirements call for advanced security measures.

Multiparty Computation (MPC) wallets have emerged as the security technology of choice for institutions and custodians. MPC wallets dramatically improve the security of private keys by eliminating the existence of a complete key on any single device. This requires bad actors to defeat multiple systems concurrently to gain access or control over a key.

Perhaps the only alternative that is both more secure and operationally efficient than a well-designed online MPC wallet is an air-gapped MPC key storage and signing wallet system like the Blockdaemon Institutional Wallet. Storing MPC key shares offline adds an additional layer of protection against online threats while maintaining the operational efficiency and liquidity institutions need.

Similar to online MPC wallets, cold wallets using MPC generate, store, and use private keys in the form of multiple distributed key shares. Storing keys offline using MPC maximizes key security to protect digital assets, including staked assets, from potential insider and external threats.

Cold Staking Maximizes Rewards

While cold storage maximizes key and digital asset security, these assets can still be staked to secure staking rewards. 

Staking provides consistent rewards on digital assets while securing Proof-of-Stake networks. Blockdaemon offers staking solutions across 40+ blockchains, including chains in the Ethereum, Polkadot, Cosmos and Solana ecosystems. 

With Blockdaemon, institutions can choose from delegated staking and validator node services. Delegated staking enables institutions to delegate their staking rights to Blockdaemon’s industry leading validators, ensuring professional and secure staking operations. Validator node services offer institutions the ability to run their own white label nodes, managed by Blockdaemon’s world class blockchain engineering team and backed by security-first infrastructure. 

Blockdaemon's staking solutions ensure that institutions maximize their staking rewards while maintaining the highest levels of security and operational efficiency.

Cold Staking with Institutional Wallet

Blockdaemon introduces cold staking support on Institutional Wallet, the preferred wallet platform for leading banks, custodians, exchanges, and other Web3 service providers. Cold staking of ETH is now available for evaluation in our hosted Institutional Wallet sandbox. Register today for quick access to evaluate the wallet for both online and offline/air-gapped wallet services.

Institutional Wallet is an advanced wallet platform that supports self-hosted online wallet services with high levels of security and policy controls, plus the option for self-hosted air-gapped MPC nodes supporting cold wallet services. The wallet supports staking directly from the online wallet and will soon support offline or air-gapped cold staking services, with online reporting for both online and cold-staked digital assets.

Register to begin your free 30-day evaluation of Institutional Wallet with Cold Staking today!

Try our Institutional Wallet Sandbox today!


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