Institutional Investors Get Secure, Efficient Tezos Access via Seoul Upgrade

The Tezos blockchain activated its 19th protocol upgrade, "Seoul," on September 19, 2025, introducing institutional-grade security, network efficiency gains, and streamlined staking workflows. The upgrade, developed by Nomadic Labs, Trilitech, and Functori, addresses growing demand from institutional investors and multi-user setups through protocol-native multisignature (multisig) accounts. This feature eliminates reliance on external smart contracts for shared account management, enhancing security and reducing operational complexity Seoul Protocol Upgrade Brings Strengthened Institutional Security to Tezos and Enables 63x Network Efficiency Gains^[1]. Multisig accounts leverage BLS cryptography, enabling multiple cryptographic signatures to be combined into a single signature, a capability previously unavailable on most blockchains Boarding for Seoul — What’s Packed in Tezos’ Latest Protocol Trip^[3].

Seoul also delivers a 63x reduction in bandwidth and storage requirements for bakers through "aggregated attestations." By bundling attestations into a single operation per block, the upgrade lowers daily data needs from approximately 900 MB to 14 MB, enabling faster finality and lower latency on the Tezos network Seoul Protocol Upgrade Brings Strengthened Institutional Security to Tezos and Enables 63x Network Efficiency Gains^[1]. This efficiency gain is critical for scaling institutional adoption, as it reduces infrastructure costs and improves performance for validators. The upgrade’s performance improvements are expected to attract more bakers, particularly those using tz4 accounts, which benefit from BLS signatures but require updated hardware and software compatibility Boarding for Seoul — What’s Packed in Tezos’ Latest Protocol Trip^[3].

A key user-facing enhancement is "1-click unstaking," which automates the finalization of unstaking requests after a 4-day waiting period. Previously, users had to manually complete the process to access their funds. The new feature allows any network participant to finalize unstaking operations, enabling automation by wallets or dApps Seoul Protocol Upgrade Brings Strengthened Institutional Security to Tezos and Enables 63x Network Efficiency Gains^[1]. This change aligns with Tezos’ broader goal of improving user experience while maintaining security, as funds remain frozen during the waiting period to prevent misuse You're Not Staking, You're Missing Out^[6].

Market participants and analysts have interpreted the upgrade as a catalyst for increased institutional adoption. The introduction of multisig accounts and tz4-based staking addresses critical gaps in security and usability for large-scale investors, who often require robust key management solutions Boarding for Seoul — What’s Packed in Tezos’ Latest Protocol Trip^[3]. Additionally, the upgrade’s efficiency gains could lower entry barriers for smaller bakers, fostering a more decentralized validator ecosystem Tezos Bakers: Let’s Get Ready for Seoul!^[2]. On-chain data suggests that staking activity on Tezos has grown steadily since the Paris protocol upgrade in June 2024, with staking rewards now three times higher than delegation rewards .

The market reaction to the Seoul upgrade has been cautiously optimistic. Traders and analysts note that successful protocol upgrades often correlate with increased trust and price momentum, provided there are no technical hiccups. A smooth activation of Seoul could reinforce Tezos’ position as a leader in institutional-grade blockchain solutions, particularly as competitors like Solana and Ethereum grapple with scalability and governance challenges Staking | Tezos Documentation^[5]. However, risks remain for users relying on older hardware, such as Ledger Nano S devices, which face limited compatibility with tz4 accounts post-upgrade Tezos Bakers: Let’s Get Ready for Seoul!^[2].

Tezos’ self-amending governance model continues to demonstrate its adaptability, with the Seoul upgrade marking the protocol’s seventh year of operation. The network’s ability to iteratively improve security, performance, and user experience without disruptive forks positions it as a compelling option for altcoin investors seeking long-term value. As the crypto market consolidates post-2024 highs, Tezos’ focus on institutional readiness and operational efficiency may attract further capital inflows from whales prioritizing stability and scalability.