Strategic Alliances Power Institutional Staking Revolution in Web3

The institutional adoption of staking in Web3 is no longer a speculative narrative—it is a structural shift reshaping the digital asset landscape. At the heart of this transformation lies a critical enabler: strategic partnerships between institutional-grade staking infrastructure providers and investment platforms. The recent collaboration between Two Prime and Figment exemplifies this trend, offering a blueprint for how institutional players are building scalable, compliant, and diversified yield solutions. For investors, this signals a compelling inflection point in the DeFi and crypto custody markets, where infrastructure innovation is unlocking new capital flows and redefining risk-return profiles.

Bridging PoW and PoS: A New Era of Institutional Staking

Two Prime, an SEC-registered digital asset investment adviser managing $1.75 billion in assets, has partnered with Figment, a staking infrastructure provider with $15 billion in assets under stake and over 1,000 institutional clients. Together, they are creating a unified platform that bridges Proof-of-Work (PoW) and Proof-of-Stake (PoS) mechanisms. This integration allows institutional clients to generate yield on Bitcoin (BTC) through lending and derivatives while simultaneously accessing staking rewards on over 40 protocols, including Ethereum (ETH), Solana (SOL), and Avalanche (AVAX).

The partnership addresses a critical gap in the market: the lack of institutional-grade tools for managing crypto treasuries. As corporations and private entities accumulate Bitcoin—public and private companies now hold ~1.509 million BTC—demand for yield-generating strategies has surged. Two Prime's Bitcoin yield strategies, combined with Figment's audited staking infrastructure, provide a solution that balances compliance, security, and diversification. This is not merely about passive income; it's about treating digital assets as a core component of institutional portfolios, akin to traditional fixed-income instruments.

Why This Partnership Matters for Investors

The Two Prime–Figment collaboration is emblematic of a broader trend: institutional players are prioritizing infrastructure that simplifies operational complexity and mitigates risk. For example, Figment's point-and-click staking platform, slashing protection, and reward tracking tools reduce the technical barriers for institutions, while Two Prime's custody partnerships ensure regulatory alignment. This synergy is critical in a market where volatility and regulatory uncertainty have historically deterred institutional participation.

Moreover, the partnership reflects the maturation of the staking market. In 2025, total value locked (TVL) in institutional staking has grown to $25 billion, driven by demand for capital efficiency. By integrating PoW and PoS strategies, Two Prime and Figment are creating a more resilient yield model. For instance, while Bitcoin's PoW model offers exposure to a dominant asset class, PoS protocols like Solana and Hyperliquid provide higher APYs and faster transaction speeds. This diversification reduces reliance on any single blockchain's performance, a key consideration for risk-averse investors.

The competitive landscape further underscores the investment potential. Coinbase, for example, recently launched a Bitcoin Yield Fund for non-US investors, offering up to 8% returns. Similarly, Solv Protocol and BOB are innovating in hybrid Bitcoin yield models. These developments indicate a market where infrastructure providers and platforms that facilitate institutional staking are poised for growth.

Strategic Entry Points for Investors

For investors seeking exposure to this trend, three areas stand out:
1. Staking Infrastructure Providers: Companies like Figment, which offer audited systems and slashing protection, are critical to institutional adoption. Their revenue models, often based on a percentage of staking rewards, benefit from rising TVL.
2. Custody and Compliance Platforms: As institutions prioritize security, custodians that integrate with staking infrastructure (e.g., through multi-signature wallets or insurance partnerships) will see increased demand.
3. Digital Asset Investment Advisers: Firms like Two Prime, which aggregate institutional demand and offer tailored yield strategies, are positioned to capture a growing share of the $1.75 trillion digital asset management market.

The Two Prime–Figment partnership is not an isolated event but a harbinger of a larger shift. As institutional investors move beyond speculative trading and toward strategic asset management, the demand for integrated staking solutions will accelerate. This creates a flywheel effect: more institutional capital leads to higher TVL, which in turn attracts more infrastructure innovation and liquidity.

Conclusion: A Structural Shift in Web3

The institutional staking market is evolving from a niche corner of DeFi into a cornerstone of modern portfolio management. Strategic partnerships like the one between Two Prime and Figment are not just filling gaps—they are redefining the rules of the game. For investors, the key takeaway is clear: infrastructure that enables institutional-grade staking is a high-conviction opportunity. As the market continues to mature, early adopters of these platforms will be well-positioned to capitalize on the next phase of Web3's growth.