In the rapidly evolving world of cryptocurrency, the significance of staking is taking center stage, particularly with the insights from industry leader Lorien Gabel. With decades of experience in building internet infrastructure, Gabel co-founded Figment in 2018, a company that has since emerged as a powerhouse in the staking space, managing an impressive billion in assets and serving over 500 institutional clients. As a speaker at the upcoming Consensus Hong Kong event scheduled for February 18-20, Gabel is set to share his expertise on Figment’s expansion into the Asian market and the growing institutional interest in staking.
Figment’s approach to staking is rooted in a deep understanding of network security and cloud infrastructure, crucial elements for institutions looking to safely earn yields through proof-of-stake networks. Gabel highlighted the unique challenges of navigating diverse regulatory landscapes across Asia, emphasizing that each country presents its own distinct set of rules and adoption levels for cryptocurrencies. With Figment recently opening offices in Singapore, Japan, and Hong Kong, the company aims to adapt its services and comply with local regulations while educating potential clients about staking.
“Staking is not the highest-yield activity in crypto, but it’s the safest way to earn yield without counterparty risk,” said Gabel, pointing out that institutions typically prefer the stability offered through staking over more volatile options in the market.
Amid increasing institutional interest, Gabel noted a shift in how banks and telecoms in Asia are embracing staking as a reliable investment option, akin to traditional assets. Figment’s careful evaluation framework ensures they only support legitimate and promising tokens, a process that takes into account client demand and market dynamics. As innovations in staking evolve, such as liquid staking and new chains gaining traction in Asia, Figment remains dedicated to offering secure and compliant solutions for its growing clientele.
This insight into Figment’s strategic growth and philosophy showcases the transformative potential of staking and its role in the broader context of cryptocurrency adoption, particularly in emerging markets like Asia.
Lorien Gabel and the Evolution of Staking in Asia
Discover how Lorien Gabel and Figment are shaping the future of staking in Asia while addressing the challenges and innovations in the industry.
- Company Overview
- Figment is a leading independent staking provider, managing billion in assets.
- Serves over 500 institutional clients globally.
- Founding Vision
- Co-founded in 2018 to leverage expertise in network security and cloud infrastructure.
- Identified proof-of-stake (PoS) as a critical technology for future financial systems.
- Expansion into Asia
- Opening offices in Singapore, Japan, and Hong Kong to tap into growing demand.
- Awareness of diverse regulatory landscapes and cultural nuances across Asian markets.
- Challenges Faced
- Understanding varied regulatory frameworks in each country.
- Educating the market about staking vs. DeFi lending.
- Institutional Interest
- Increased interest from traditional financial institutions in staking operations.
- Potential for a snowball effect as adoption accelerates across the region.
- Token Selection Process
- Utilizes a refined evaluation framework to select tokens for staking.
- Customer demand plays a significant role in decisions, especially from Asian clients.
- Staking Security and Reliability
- Focus on providing the most secure and compliant staking options.
- Staking seen as a stable investment, analogous to treasury bonds.
- Future Trends
- Emerging interests in liquid staking and Bitcoin staking.
- Monitoring innovative staking models developing from Asia.
“Staking is the equivalent of a 10-year Treasury bond — it’s the stable, reliable option compared to high-risk DeFi strategies.” – Lorien Gabel
Figment: Pioneering Staking in a Diverse Asia
Lorien Gabel’s journey with Figment highlights a pivotal shift in the blockchain landscape, particularly the proof-of-stake (PoS) model. In contrast to typical infrastructures, Figment has carved out a unique niche, particularly in Asia, where the vast array of regulatory environments poses both challenges and opportunities. Unlike competitors that might view Asia as a homogenous market, Figment’s approach underscores a deep understanding of local nuances, making it stand out in a saturated field of staking providers. As a player managing billion in staking assets amidst over 500 institutional clients, Figment embodies a strategic focus that many other firms may overlook.
Competitive Advantages: Figment’s established brand and expertise in internet infrastructure give it a leg up in building trust. Its history allows the company to navigate complex networks effectively, supplying a professional edge that appeals to institutional clients. Furthermore, by emphasizing compliance and security over rapid profit generation—contrary to some riskier channels like decentralized finance (DeFi)—Figment promotes a more stable investment model. This is especially appealing in an Asian market where institutions favor reliability.
Challenges and Disadvantages: Yet, this careful approach does come with its downsides. The unique regulatory landscapes across different Asian countries can be daunting. While Figment aims for compliance, competitors might find shortcuts, potentially luring clients with seemingly better returns. Additionally, market volatility remains an inherent risk in crypto, overshadowing Figment’s otherwise robust operational model. Their deliberate pace in launching services might frustrate clients eager for rapid expansion and offerings.
This strategic positioning of Figment could substantially benefit large institutional investors looking for sustainable staking opportunities while creating obstacles for small-scale investors who may not have the same access to educational resources. New entrants in Asia, whether they are blockchain projects looking to stake or financial institutions exploring avenues for digital assets, might find themselves at a crossroads, needing to weigh the high-security nature of Figment’s offerings against competitors potentially offering quicker, albeit riskier gains.
With a distinctly structured process for selecting which tokens to support and a keen awareness of client demand, Figment has set itself apart. Their focus on education can cultivate a more informed investor base; however, they must remain vigilant against the rapidly evolving market trends and the risk of misalignment with the pressing needs of Asian investors. Their emphasis on ‘risk-adjusted returns’ heralds a needed shift in the industry, but it’s equally essential that they maintain their lead amid formidable competition that isn’t afraid to push boundaries for higher eagerness and returns.
