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Why Stake with Fidelity Digital Assets®?

Inside our approach to Ethereum staking

by Fidelity Digital Assets®

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As digital assets mature, institutional participation has expanded beyond buying, holding, and trading. One of the most significant developments has been the growth of staking as a way to engage with blockchain networks.

Since the start of 2021, the value of assets staked across Ethereum—one of the largest proof-of-stake networks—has grown from roughly $1 billion to over $100 billion. However, staking extends beyond potential returns. The infrastructure, controls, and operating model supporting participation all play a critical role in long-term strategies.

That perspective has guided how Fidelity Digital Assets® built our Ethereum staking capabilities. The same institutional standards that underpin our custody and trading platform guide how our staking infrastructure is designed and operated.

Understanding Staking

Several blockchain networks rely on a consensus mechanism known as proof-of-stake. Under this model, investors commit their assets to validators, which help secure the network by verifying transactions and maintaining the blockchain. In return, they can earn rewards.

Staking plays a central role in Ethereum's security model, with more than $100 billion staked as of September 2026.1

For institutional investors, staking can provide an opportunity to generate income while supporting network operations. Staking enables participants to earn rewards directly from blockchain protocols without taking on direct counterparty risk through lending or other similar services.

Using Ethereum’s reward rate as of September 15, 2026, “ETH Balance Over Time” illustrates the projected return on 1 ETH staked. Assuming rewards compound daily and the rate remains constant at 2.5%, 1 ETH could generate a nearly 30% return over the next 10 years.   FDA_WhyStakewithFDA_Blog_Chart_ETHBalanceOverTime.png

However, staking outcomes can be influenced by validator operations, security controls, and protocol-specific requirements, making provider selection an important consideration.

Custodian-Operated Staking Infrastructure

How staking infrastructure is designed and operated can have a meaningful impact on both outcomes and risk management. That is why Fidelity Digital Assets® developed our staking capabilities in-house, enabling direct oversight of the environment supporting clients' staked assets.

This approach is particularly relevant on Ethereum, where validator downtime and certain operational failures can result in penalties, including slashing events that may lead to the loss of staked assets. Managing these risks requires disciplined infrastructure design, governance, and operational controls. 

By operating staking infrastructure internally, Fidelity Digital Assets can apply the same standards that support our custody and trading platform across technology, operations, and risk management while still offering competitive rewards. 

The platform incorporates multiple layers of operational controls, including infrastructure diversification and OFAC-compliant relays, and is designed to support institutional security and compliance requirements.

This approach helps support a staking experience designed for long-term participation, operational resiliency, and institutional confidence.

Simplifying Institutional Participation

Staking as an individual can require significant operational resources, including validator management, ongoing monitoring, software maintenance, and protocol-specific expertise. On Ethereum, independently operating a validator also currently requires meeting the network's 32 ETH minimum threshold, equivalent to approximately $70,000 as of November 2026.

Fidelity Digital Assets simplifies participation by managing the infrastructure behind staking while clients maintain custody throughout the staking lifecycle. With low staking minimums, institutions can participate without meeting the 32 ETH minimum or maintaining their own validator infrastructure. Integrated reporting within the existing custody account provides greater visibility into staking activity while helping reduce operational complexity.

This eliminates the need to independently meet Ethereum's validator minimum, providing greater customer flexibility. Automatic reward compounding paid weekly further helps maximize reward potential, while operational and onboarding support is available to clients throughout the staking process.

By reducing the operational burden associated with staking, Fidelity Digital Assets enables institutions to focus on broader digital asset objectives rather than day-to-day validator management.

Start Staking with Fidelity Digital Assets

As staking becomes an increasingly important component of the digital asset ecosystem, institutions should consider more than rewards alone.

Infrastructure, operational resiliency, and risk management can all influence outcomes. By combining in-house staking infrastructure, disciplined risk management, and a seamless staking experience, Fidelity Digital Assets helps institutions confidently participate in staking while maintaining a long-term perspective on digital assets.

Interested in learning more about staking with Fidelity Digital Assets? Get in touch to start the conversation.

1 Fidelity Digital Assets Research via Coin Metrics, as of September 2026.

The information herein was prepared by Fidelity Digital Assets, National Association (“FDA, NA”) and Fidelity Digital Assets, Ltd (“FDA, LTD”). It is for informational purposes only and is not intended to constitute a recommendation, investment advice of any kind, or an offer to buy or sell any asset. Perform your own research and consult a qualified advisor to see if digital assets are an appropriate investment option.

Digital assets are speculative and highly volatile, can become illiquid at any time, and are for investors with a high risk tolerance. Investors in digital assets could lose the entire value of their investment. Digital assets are not insured or guaranteed by the Federal Deposit Insurance Corporation, or any other government agency, and are not obligations of any bank.

Custody and trading of digital assets are provided by FDA, NA, which is a national trust bank. FDA, LTD relies on FDA, NA for these services. FDA, LTD is registered with the Financial Conduct Authority under the U.K.’s Money Laundering Regulations. The Financial Ombudsman Service and the Financial Services Compensation Scheme do not apply to the cryptoasset activities carried on by FDA, LTD.

To the extent this communication constitutes a financial promotion in the U.K., it is issued only to, or directed only at, persons who are: (i) investment professionals within the meaning of Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "FPO"); (ii) high net worth companies and certain other entities falling within Article 49 of the FPO; and (iii) any other persons to whom it may lawfully be communicated.

This information is not intended for distribution to, or use by, anyone in any jurisdiction where such distribution would be contrary to local law or regulation. Persons accessing this information are required to inform themselves about and observe such restrictions.

Staking involves risks, including loss. Staked assets may be subject to network restrictions and lockups which may impact their transferability or liquidity. 

FDA, NA and FDA, LTD do not provide tax, legal, investment, or accounting advice. This material is not intended to provide, and should not be relied on, for tax, legal, or accounting advice. Tax laws and regulations are complex and subject to change. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.

Views expressed are as of the date indicated, based on the information available at that time, and may change based on market or other conditions. Unless otherwise noted, the opinions provided are those of the speaker or author and not necessarily those of Fidelity Digital Assets or its affiliates. Fidelity Digital Assets does not assume any duty to update any of the information.

Coin Metrics is a trademark of Coin Metrics Inc. Copyright © Coin Metrics, 2026.

Fidelity Digital Assets and the Fidelity Digital Assets logo are registered service marks of FMR LLC.

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