Interactive Brokers Launches Ethereum Staking Service for Eligible Clients
Interactive Brokers has announced the launch of a cryptocurrency staking service for eligible clients, initially supporting only Ethereum, with infrastructure provided by zerohash. Clients can submit staking and unstaking requests through the Staking Dashboard in the Client Portal.
Rewards are credited in the form of additional staked Ethereum and can compound while the holdings remain staked. CEO Milan Galik compared this service to the company's stock yield enhancement program, stating that clients can earn rewards on their held crypto assets. Product availability varies depending on the country of residence of Interactive Brokers' affiliated entities and clients.
zerohash is responsible for validator operations, reward calculations, and compliance. Staked assets are held in accounts opened in the name of clients at zerohash, and Interactive Brokers does not hold assets as a validator or custodian. Staking may take up to five days to become effective, while unstaking may take several weeks, depending on network conditions.
The company currently supports trading of 20 digital assets, including Bitcoin, Ethereum, Solana, and XRP. Interactive Brokers previously expanded crypto trading, external wallet transfers, and stablecoin funding features through zerohash and Paxos, having first launched crypto trading in 2021.
Currently, approximately 43.7 million ETH are staked, accounting for about 35.77% of the circulating supply, which corresponds to about $110 billion at an approximate price of $2,500. Some reports indicate that clients can earn at least 70% of the staking rewards, with the remainder collected by the service provider. There are restrictions on staking products in states like California, Maryland, New Jersey, and Wisconsin.
Clients transfer their held Ethereum into staking to earn network rewards, with funds moving from the tradable balance to the staking position. zerohash receives a share of the validator operations and rewards, while Interactive Brokers earns a portion of the fees through distribution. Clients holding Ethereum receive compounding rewards, and exchanges and independent staking platforms face pressure to retain clients.
Source: Public Information
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Since 2021, Interactive Brokers has offered trading in Bitcoin, Ethereum, and other assets through Paxos, and has since expanded to 20 assets, external wallet transfers, and stablecoin features. The company previously led funding rounds for zerohash and is now directly utilizing its staking infrastructure, continuing the path of completing crypto custody and operations through third parties rather than building its own validator network.
Clients' Ethereum is transferred from Interactive Brokers' tradable accounts to staking accounts under zerohash's name, with rewards returned in a compounding manner. The company captures up to about 30% of the rewards through front-end distribution, while risks, reductions, and exit delays are borne by zerohash. The motivation is to increase asset holding yields on the existing brokerage platform and enhance client fund retention.
Similar models have emerged among some brokers and exchanges offering staking services through Coinbase or Figment. Currently, institutional and custody platforms are capturing a larger share of Ethereum validator deposits, and Interactive Brokers is in an expansion phase of integrating traditional brokerage accounts with on-chain yield products.
This essentially represents a restructuring of the industry chain. Traditional brokers are outsourcing staking infrastructure to specialized crypto service providers while retaining client interfaces and distribution rights. The mechanism involves separating validator operations, compliance, and custody from the broker's balance sheet while capturing value through reward sharing and client stickiness, making on-chain yields an extension of traditional securities accounts.
ABAB News · Cognitive Law
Staking is an asset yield, not a trading function
Brokers do distribution, infrastructure providers do validation
Clients hold assets, platforms split reward flows