Hex Trust Integrates stETH Custody And Liquid Staking In Partnership With Lido
John: Hi everyone, I’m John, your go-to tech blogger for all things Web3, metaverse, and blockchain on Blockchain Bulletin. Today, we’re diving into the recent partnership between Hex Trust and Lido that integrates stETH custody and liquid staking, making it easier for institutions to handle Ethereum staking. If you’d like a simple starter guide to exchanges, take a look at this beginner-friendly overview.
Lila: That sounds exciting, John—I’ve heard about staking but not sure how it fits with custody for big players. Can you start by explaining what this partnership is all about?
Understanding stETH and Liquid Staking Basics
John: Absolutely, Lila. Let’s break it down: stETH stands for Staked ETH, which is a token you get when you stake Ethereum through Lido’s protocol. Liquid staking means you can stake your ETH to earn rewards without locking it up completely—you get stETH in return, which you can trade or use in other DeFi apps while still earning those rewards.
Lila: Okay, so it’s like having your cake and eating it too? But what makes this different from regular staking?
John: Exactly, and here’s a quick aside—no actual cake involved, just crypto rewards! In the past, staking ETH required locking 32 ETH and running a validator node, which could tie up your assets for a long time. Currently, with liquid staking via Lido, users get stETH that mirrors the value of staked ETH plus rewards, and it stays liquid for things like lending or trading.
Background on Hex Trust and Lido
Lila: Got it. Now, who are these companies? I’ve seen Lido mentioned in Ethereum news, but Hex Trust is new to me.
John: Lido has been around since 2020, launching as a decentralized staking protocol on Ethereum. It allows anyone to stake ETH without the full 32 ETH minimum, pooling funds and issuing stETH tokens. As of today, 2025-09-17, Lido handles a significant portion of Ethereum’s staked assets, with stETH being one of the largest liquid staking tokens.
Lila: And Hex Trust?
John: Hex Trust is a digital asset custodian founded in 2018, based in Hong Kong, and licensed in places like Singapore and Dubai. They provide secure storage and management for crypto assets, mainly for institutional clients like banks and funds. In the past, they’ve expanded services to include staking for various blockchains, and this new integration builds on that.
Details of the Recent Partnership
Lila: So, what exactly happened with this integration announced today?
John: On 2025-09-17, Hex Trust announced their partnership with Lido to add custody and liquid staking support for stETH. This means institutional investors can now securely store stETH in Hex Trust’s regulated custody platform and stake ETH with just one click, without needing to manage their own validators. It’s all integrated into Hex Trust’s existing system, simplifying access to Ethereum rewards and DeFi liquidity.
Lila: That’s timely—how does this fit into the current crypto landscape?
John: Currently, with Ethereum’s proof-of-stake model solidified since the 2022 Merge, demand for easy staking solutions has grown. This partnership expands on Lido’s existing services, which as of recent data from their site, include opportunities for stETH holders to earn extra rewards through DeFi protocols. Hex Trust’s move makes it more accessible for big institutions that prioritize security and compliance.
Benefits and Use Cases for Institutions
Lila: Sounds practical. What are some real benefits here?
John: For institutions, this reduces the hassle of staking infrastructure. They can earn staking rewards—currently around 3-4% annually on Ethereum, based on network data—while using stETH in DeFi for lending or collateral. It’s secure custody plus liquidity, all in one platform.
Lila: Can you give examples of how someone might use this?
John: Sure, here’s a simple list of use cases:
- Store stETH safely in Hex Trust’s vaults and earn rewards without moving assets around.
- Use stETH as collateral on platforms like Aave for borrowing other tokens.
- Trade stETH on exchanges for quick liquidity while keeping staking benefits.
- Integrate into institutional portfolios for diversified crypto exposure without validator management.
John: These are concrete ways institutions have been using similar tools in the past, and now it’s streamlined through this partnership.
Potential Risks and Safeguards
Lila: What about downsides? Staking sounds great, but are there risks?
John: Yes, like any crypto activity, there are risks. For instance, smart contract vulnerabilities in protocols like Lido could affect stETH, though Lido has undergone multiple audits. Also, stETH isn’t always pegged 1:1 to ETH, as seen in past market events like 2022 when it briefly depegged due to liquidity issues.
Lila: How do they handle that?
John: Hex Trust emphasizes regulated custody with insurance and multi-signature wallets for security. Compliance varies by jurisdiction, so users should check official docs and local regulations before diving in. Currently, both companies focus on transparency, with Lido providing real-time staking data on their site.
Looking Ahead in Web3 Staking
Lila: What’s next for this kind of tech?
John: Looking ahead, we might see more integrations like this as institutions adopt Web3. Lido has expanded to other chains in the past, like Polygon and Solana, so partnerships could grow. For now, this Hex Trust-Lido tie-up, as of 2025-09-17, sets a benchmark for secure, easy institutional staking.
Lila: Any tips for beginners interested in this?
John: Start small: Research via official sites, understand the basics of Ethereum staking, and consider custody options if you’re handling larger amounts. Remember, this is evolving—stay updated with trusted news.
John: Wrapping up, this partnership is a solid step toward making Ethereum staking more accessible and secure for institutions, blending custody with liquid options. It’s exciting to see Web3 tools mature like this. And if you’d like a bit more background on exchanges, you might enjoy this global guide.
Lila: Thanks, John—that clears up a lot! Readers, remember to do your own research and stay informed on these developments.
This article was created based on publicly available, verified sources. References:
- Original Source
- Hex Trust Adds Custody and Staking for Lido’s stETH, Expanding Institutional Access to Ethereum Rewards
- Hex Trust Adds StETH Custody, Brings Lido Liquid Staking To Institutions
- Lido Liquid Staking Official Site