Interactive Brokers has launched Ethereum staking for eligible clients, entering a market where about 36% of the cryptocurrency’s circulating supply is already committed to validators.
The brokerage said on 13 October that qualifying Interactive Brokers LLC customers could stake ETH through its Client Portal, with crypto infrastructure provider zerohash operating the service. Rewards are paid in ETH and can compound while customers’ holdings remain staked.
The move adds crypto rewards to a platform where clients already trade stocks, bonds, futures and digital assets. It also allows Interactive Brokers to compete for assets that investors might otherwise hold with specialist cryptocurrency exchanges or staking providers.
Around 43.7 million ETH, equivalent to 35.77% of the circulating supply, is currently committed to validators, according to validatorqueue.com, which uses data from blockchain explorer beaconcha.in. With ETH trading at about $2,500, those holdings are worth approximately $110bn.
Staking has continued to expand despite a prolonged fall in cryptocurrency prices. Lido’s first-half report said the amount of Ethereum staked across the network rose by 19%, from 36.3 million ETH at the beginning of January to 43.1 million by 30 June, while the cryptocurrency lost 47% of its dollar value.
Institutional and custodial services accounted for much of that increase. Lido said the institutional segment’s share of staked ETH rose from 25.9% to 35.3% during the six-month period.
Lido’s own market share fell from 23.9% to 21.2%, despite an increase in the quantity of ETH deposited through its protocol. The figures underline the expanding influence of institutional platforms in a market traditionally led by crypto-native staking providers.
Interactive Brokers is entering with an established customer base used to managing several asset classes through one brokerage account. Chief executive Milan Galik compared the service with the company’s Stock Yield Enhancement Program, through which customers can earn income by lending eligible shares.
“We want clients to earn more from the assets they hold,” Galik said.
At launch, Ethereum is the only cryptocurrency supported. Customers can request staking and unstaking through the brokerage’s dashboard, although access depends on eligibility, account affiliation and country of residence.
Interactive Brokers has not disclosed a specific staking fee or guaranteed annual yield. zerohash says platforms set their own customer charges, which are deducted from staking rewards before payment. Interactive Brokers’ advertised cryptocurrency trading commissions of 0.12% to 0.18% are separate from staking fees.
Customers cannot immediately sell or transfer staked ETH. Recovering the assets requires an unstaking process, which may be delayed by Ethereum’s validator exit queue.
The service also carries a potential risk of slashing, a penalty for validator misconduct. Interactive Brokers warns that cryptocurrency held through its crypto providers is outside the brokerage’s custody and is not covered by Securities Investor Protection Corp.
Approximately 962,000 ETH was awaiting validator exits, according to validatorqueue.com, with an estimated wait of nearly 17 days before a further withdrawal-processing period. The timing varies with network demand, meaning customers remain exposed to changes in ETH prices while waiting to regain access. Interactive Brokers has not guaranteed a withdrawal deadline.
