I hope to talk to you a little bit today about what we're going through as an infrastructure and staking provider, in terms of Ethereum staking in the traditional TradFi and institutional space. The question is n't really whether people should staking. That was probably 24 months ago. Now the question is who to trust and how to find a partner to scale. Just to give you an idea of Blockdaemon, I do n't know if you're familiar with us .
We are an 8-year-old infrastructure company, an official provider in this field, starting with node infrastructure, fully dedicated nodes, RPC API business. We have evolved into a staking company, supporting over 70 different chains and protocols. We also have an MPC MPC wallet technology business where we provide wallet technology to those institutions that we talked about. And we also have DeFi infrastructure. So, as far as us in the industry, like Ethereum staking, we've been doing this since the beginning, and today we represent about 5% of the about 5% of the total ETH market.
So Ethereum is really at a crossroads, and we've really crossed, uh, a big threshold when it comes to institutional adoption. You know, structurally it is very different from Bitcoin. It builds an economy on profitability and generates a large cash flow. It really creates a treasury asset not only to influence the price, but also to drive the price up. So, you have already seen over 500 million ETF implementations in the Ethereum ecosystem.
We have approximately 200 publicly traded DApps in the ecosystem today, but 36 of them are focused on Ethereum. So, we represent about 20% of the total number of publicly traded DApps on the market. You know, you can really see the implementation continuing, and I think we're not going to slow down unless we see something unprecedented. So, with DApps, that's about 7 million pledged assets. This is about another 6% of the supply being put on the exchange, and we will continue to see this steadily increase.
So steadily increase. So , from a structural growth perspective, this is not really a bull market cycle. Everyone can attest that we are not in a bull market right now, Striko. But you can see a steady increase in Ethereum adoption, Ethereum development, and Ethereum staking. The total amount of pledged assets today is just over 38 million, approaching 40 million.
This is approximately $10 million more than from January 1, 2024. Of the total Ethereum assets, that's 32%, and as I said, you know, we represent about 5% of that total market. So what we're seeing is a steady steady growth, uh, continuous upswing, uh, from 2024 to the present, barring all the craziness that's going on in the broader market like we're seeing today. So seeing today. So , this really significantly reduces our capabilities in terms of constant growth and watching the growth of institutional implementation.
When we talk to institutions, we talk to them about a lot of different things, but you can really define these five categories when we sit down with someone and say, "Okay, tell us about your risks, your security, your security posture, your compliance posture ." How can you help us provide liquidity? Tell us about profitability, not just maximizing rewards, but how you protect our assets from shrinkage? And then about the operational exposure of how you are going to serve us 7/24 365.” So, we'll address each of these issues and talk to them, but it's really the nature of the business when it comes to talking to these institutions and how they want to implement Blockdaemon from an institutional staking perspective.
So from an operator perspective, we really get back to the business with the customer, discussing how we manage our validators, how we manage the key, the KMS and the signing process, how we manage the policy disclosure in the engine from a security perspective. We really want to emphasize again that the client should not have access to the keys. The operator should not have access to the keys. The key should never leave the protected enclave. From a remote signing perspective, we want to make sure that policy-based access is done at the KMS level.
And then, from an MPC perspective, we want to make sure that no operator has any signing authority . So, these are the stages we are looking at. The basic idea is that the operator should not need to touch the private keys in any way. Signing and launching operations must be completely separated. So, it reflects what they are used to from the evolution of the traditional perspective on the side.
From dealer discretion to policy compliance software, er, calculations. Moving now to OFAC vetting, which is another key component of our conversations with institutions, it really should be applied by default. Many vendors in this industry today are placing this function on the customer's responsibility. At Blockdaemon, we do n't do this. We operate the OFAC-compliant MEV Boost relay infrastructure.
We verify each entry before signing it on the block. You can see some of the matching MEV Boost repeaters we use in production today. And another conversation we have with our customers is about the certification and controls that we have . Blockdaemon, as I said, is an infrastructure company with an 8-year history. We have been ISO 27001 compliant for at least the last 5-6 years.
Probably one of the first in the industry to meet ISO requirements meet ISO requirements . We are SOC 2 Type 2 compliant. We are just completing SOC 1 Type 1. We have sanctions checks and of course SDN list monitoring. So when we approach a client and discuss our position with them, it's not just a meeting with the node ops teams, dev-dev- node ops teams, dev-dev- designers, and our head of infrastructure engineering and staking.
We really engage our MEV quant team to talk to them about how we work and how we're going to work on their behalf. In general, this applies to this component. Another thing we advise our clients on is entry and execution. This is very unique in this particular experience with Ethereum. You can see that the red line defines the execution, the blue line defines the input commands.
Depending on market conditions and unforeseen incidents of hacking etc. , the market will react to these specific entries and executions and we need to advise our clients to proactively manage this with them. We definitely try to have our clients maintain a buffer of 10 to 20% without staking. It's a shame that they have to set aside 10 to 20% set aside 10 to 20% and not use those funds to make a profit, but they need it to enter and execute positions. We also try to solve this problem by bringing leading brokers and credit providers into the market so that we can partner with them and provide them with a service that, if something is needed to enter and execute positions, allows you to hedge your risks and not lose your pricing power and position.
So I look at it this way: if you own a house, your banker convinces you to get a home equity line of credit, it's available when you need it, but you're not obligated to use it if you don't want to. Hmm, that's pretty much how I view prime broker credit facilities: they exist for the unforeseen when it comes to XQs and Qs that go bad quickly . So, we try to advise our clients and fully assist them so that they can control everything that happens unexpectedly in the market. So the next thing we talk to them about is protecting and maximizing production. We truly guarantee our clients 100% our clients 100% insurance against underwriting and double signing.
It's, uh, guaranteed by contract, it's not an effort. Uh, all principal is protected, and if Blockdaemon is at fault in any way shape or form, we cover it. There's never been a problem, uh, historically over the years. So we want to be sure. So we reassure them that we will be able to protect them in the event of an emergency , and their, uh, their principal is protected.
The other side is productivity. Uh, how do we work in the market? So, again , that's when we bring in the notes, the developers and the engineers, and our MEV quantitative analysis team to show them that Blockdaemon consistently, quarter after quarter, month after month, year after year, outperforms the average earnings. You will continue to see Ethereum facing yield compression challenges , MEV compression. So this will need to be given much more importance when we talk to clients so that we consistently demonstrate a mixed figure of 3 to 3 1/2% over many years.
So we are always above average. So when we talk to clients about why they should come to us, we really show these statistics and performance year after year, and we have a monthly performance report that we send out for both Ethereum and Solana, and we do that to all of our clients and our potential clients. So the key here is—how are we going to protect your assets from unforeseen incidents of curtailment and double signing, and how are we going to help you maximize within the proper constraints of the rule structure, how to maximize your productivity. And that's what we offer. Another point is the operational excellence and full stack advantage that we offer.
What we're trying to eliminate here, the biggest risk from institutional staking and everything that comes with institutional implementation, is actually fragmentation. Every conclusion between, uh, the supplier is a gap in compliance. So if you use one provider to access your node and RPC API, and another for staking, and another staking, and another for your wallet infrastructure, and another for your data and analytics, all of these gaps are compliance gaps, and they have a security attack surface vector . So when we approach a large institution, they always ask us, “Hey, can you help us reduce our vendor footprint? Can you help us reduce our risk appetite?
Can you help us reduce all this fragmentation that we have and expand our budgets?” We want to work with one strategic institutional infrastructure provider who is in a position to help us and be our partner. So, by having one vendor, you provide, you know, a single service level agreement (SLA), a single master service agreement. You have a contractual relationship. You have one security module where you interact with the client.
And thus, you have a lower risk threshold when you are striving to achieve whatever you want to do in the digital asset landscape. So that's what we bring to the market as a strategic advantage strategic advantage , that we can help them with all aspects of their business and reduce their cost of ownership, reduce their vendor footprint, and expand their budgets, while protecting their assets and reducing their exposure to risk. Where is the industry heading? And I know I went through this pretty quickly, and I have a little bit of free time here, but it's a really interesting topic. slide.
Um, you will continue to have ETF exposure. Institutions are structurally implementing Ethereum staking, and it is self-reinforcing. This will continue. The ETF flywheel seems to be turning and moving. Corporate treasurers are treating ETH ETFs as a yielding asset and are once again looking for partners to maximize their returns while also minimizing downside risk.
Right now downside risk. Right now , as we mentioned, ETH accounts for approximately 32% approximately 32% of total staking. I really expect this figure to reach 50% or close to it within the next 3 years. So, you'll continue to see institutional participation, um, be a major driver more than the retail cryptocurrency side of things. Er, ETH, ahem, is on an incredible path to becoming the dominant institutional-grade digital asset platform .
Any problems in the market are unpredictable. So they also need to make sure that the digital asset treasury keeps moving, which is what is happening. The roadmap is also key. So, really working with the Ethereum Foundation and understanding their roadmap and how they address certain, uh, issues and requirements so they can enable further adoption and further growth will be key to where the industry goes with ETH. And then obviously the key is how the validator economy is going to continue to use, uh, MEV compression, and how we're going to monitor that, support that, and how we're going to choose the right vendor that's going to help us protect our assets and maximize as much growth as possible.
And the last slide again demonstrates all of this from a corporate staking perspective. Ethereum's institutional infrastructure is truly here to stay. It continues to be implemented. You can continue to see the growth of institutional adoption when it comes to electronic staking electronic staking , more points, more ETF adoption. And again, while we're talking about how we protect the keys and the signing aspects, when everything happens, uh, the OFAC compliance component and your SOC policy mechanism.
and certified to ISO standards, and how we manage liquidity in terms of queue entry and exit by advising and engaging these lenders. And then, from a profitability perspective, again , protecting 100% of , protecting 100% of their assets but maximizing growth, all within a compatible productive infrastructure. And then how can we help them manage the full stack? One master service agreement, one specific service level agreement (SLA), zero fragmentation zero fragmentation , and a true partnership for the customer and expanding their budgets, expanding their scope, reducing their vendor footprint, and a key asset for them in the long term. This has really been Blockdaemon's position from the very beginning, when we started 8 years ago.
Again, we have over 10 billion in assets under custody. We support over 70 different chains and protocols. Our uptime is flawless, 99.9%, and again, we are ISO and SOC certified. So hopefully that gives you a little bit of an idea of what we do when we talk to key TradFi and institutional aspects of how we convince them that convince them that you should stake your ETH, how...
stake your ETH, how... how much, and how to choose the right provider that has the right institutional corporate status corporate status . Thank you.
Automatic transcript — names and jargon may be misspelled.