Figment expands staking capabilities following SEC custody rule updates

The SEC sent a proposed overhaul of custody rules to the Office of Management and Budget on August 25. This proposal aims to clarify how investment advisers and funds may custody crypto assets under the Investment Advisers Act of 1940 and the Investment Company Act of 1940. The framework allows for self-custody in certain circumstances and permits state trust companies to serve as custodians.

Regulatory shifts and institutional requirements

Institutional participants like asset managers and pension funds require qualified custodians to meet fiduciary obligations. These firms need operational controls, segregation of duties, and disaster recovery capabilities because blockchain transactions are irreversible. The SEC’s current push includes guidance on tokenized securities and broker-dealer custody.

Figment manages approximately $15 billion in staked assets across 30 proof-of-stake networks for about 700 customers. The company recently acquired Rated, an analytics firm known for Ethereum and Solana validator performance data. This acquisition supports Figment’s strategy to invest up to $200 million in crypto startups. Figment also achieved Full Certification under the Node Operator Risk Standard (NORS) for Ethereum. This certification requires operators to demonstrate procedures through audited documentation and technical evidence regarding slashing prevention and key management.

Staking integration and network access

Figment expanded its collaboration with Coinbase Prime to include Solana, Cardano, Sui, Aptos, Avalanche, Axelar, Celestia, Cosmos, EigenLayer, NEAR, and Polkadot. This integration lets institutional clients stake assets directly from Coinbase Prime’s tools using Figment infrastructure. Earlier this year, Figment partnered with Taurus SA to improve staking compliance for banking clients.

The partnership with Coinbase Prime enabled more than $2 billion in staked assets since early 2024. Figment provides services for over 1,000 institutional clients, including foundations and large token holders. While Figment focuses on security and risk-adjusted performance, some users face high commissions. Coinbase takes a 35% standard commission on rewards, though this drops to between 25.25% and 31.75% for Coinbase One members. Do institutions prioritize these specific reward rates over other operational variables?