Interactive Brokers Adds Ethereum Staking Through Zerohash

Interactive Brokers has launched cryptocurrency staking for eligible clients, starting with Ethereum, the Nasdaq-listed broker announced on Tuesday. The service is provided by zerohash, one of the firm's two crypto infrastructure partners alongside Paxos.

At launch, clients of Interactive Brokers LLC can stake ETH through a new Staking Dashboard in the Client Portal, where they can submit stake and unstake requests and track pending activity. Rewards are credited as additional staked ETH and compound for as long as the position remains staked. The company said product availability varies by affiliate and by client country of residence.

CEO Milan Galik framed the product as an extension of the firm's Stock Yield Enhancement Program, which pays clients a share of the income generated from lending out their fully paid shares. Staking gives clients a comparable way to earn on crypto they already hold, he said, adding: "We want clients to earn more from the assets they hold."

The comparison is a useful one for the broker's customer base, though the economics differ. Stock lending income depends on borrower demand for a particular share, while ETH staking rewards come from the network's issuance and transaction fees and carry protocol risks such as slashing and unbonding delays. The release did not disclose what share of rewards zerohash or Interactive Brokers will retain.