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The institutional digital asset landscape in the Asia-Pacific (APAC) region is rapidly evolving where industry players are scaling towards achieving the highest level of asset security and maximizing asset productivity, while remaining compliant across jurisdictions. Figment, one of the leading staking infrastructure providers worldwide, continues to expand its footprint in APAC. The partnership with Rakkar marks a significant milestone in this journey to helping institutional clients.
With Lorien Gabel, Co-Founder and CEO at Figment, leading these developments, Figment is driving innovation in blockchain infrastructure and staking solutions across the region. In this interview, Lorien shares his insights on industry trends, and the challenges of navigating a diverse regulatory environment, and offers advice for those looking to make their mark in digital finance and blockchain technology.
1. Could you share the vision behind Figment’s expansion in the APAC region and what it means for your overall strategy?
Lorien: From our inception, Figment has been servicing a global client base. As the crypto markets have matured, we have seen a similar process unfold in the APAC region. In the early days, it was fringe crypto VCs and high net worth individuals investing and staking tokens. Over the past two years, more traditional finance institutions, asset managers, and corporations have gotten involved. In the past, APAC investors were limited in how they could participate beyond simple holding. Layer 2 innovations, such as Babylon and Stacks, enable Bitcoin holders to earn rewards through staking Bitcoin using various on-chain solutions. Having been in this space from the beginning, Figment has the expertise to help institutions stake their digital assets confidently and securely. That is one of our strongest roles in the industry.
2. How do you see the digital asset market evolving, particularly in relation to synergies between custodians like Rakkar and staking infrastructure providers like yourself?
Lorien: As the digital asset market evolves, this will require key players to combine their core strengths to create a more efficient and robust environment for institutional clients. A critical synergy exists between custodians (Rakkar) and staking infrastructure providers (Figment), and our goal is to provide a comprehensive solution that combines top-tier asset security with institutional-grade staking services. Rakkar focuses on safeguarding assets through advanced storage solutions, while Figment handles the full spectrum of staking infrastructure operations, including node management and protocol-specific optimizations. This collaboration not only enhances the accessibility and appeal of digital asset management for institutions but also significantly improves the risk profile. By segregating duties, each party mitigates risks within their area of expertise, resulting in a more secure and reliable offering. We are facilitating broader institutional participation in the crypto ecosystem by addressing critical concerns around security, regulatory compliance, and rewards.
3. How have the triumphs and challenges of staking adoption transformed across time and across different regions across the world?
Lorien: The regulatory landscape plays a crucial role in the evolution of staking and the broader digital asset industry. Clear regulatory frameworks, such as the U.S. SEC’s approval of Bitcoin ETFs in early 2024 and the approval of the first spot Ethereum ETF on July 23, 2024, have marked key milestones, signaling increased adoption of digital assets. Countries like Canada and Switzerland have been frontrunners, with their early approval of crypto ETFs and ETPs and clear guidelines for crypto custodians. There have been essential movements on the regulatory front in Singapore, with the Monetary Authority of Singapore (MAS) providing clear guidelines for digital asset activities, including staking. The UAE has seen a surge in institutional interest, including sovereign wealth funds, that are exploring staking. Alongside this, staking has gained mainstream adoption, with hedge funds and asset managers incorporating it into their strategies. Regulatory complexity across regions remains a significant hurdle, as does the need for education. Many institutional investors are still unfamiliar with the intricacies of staking, which is being addressed through educational resources and outreach. As blockchain adoption grows, staking will remain a critical component, driving network security and generating rewards for participants.
4. What future developments can we expect from Figment and how do you see digital asset custody playing a part?
Lorien: Figment's product strategy continues to evolve, focusing on making staking more accessible and efficient for institutions globally, and we have a few products that we accomplish this with. The Figment app offers a simple 'click-to-stake' solution for major networks like Ethereum, Solana, and Babylon Chain. Additionally, Figment Vaults delivers customizable Ethereum staking solutions tailored for marketplaces and institutions. Figment provides a white-label staking solution to reduce barriers and accelerate adoption, enabling institutions to offer staking services under their brand without building the infrastructure from scratch. Collaboration with custodians like Rakkar ensures clients have the security and freedom to participate in staking, supported by robust infrastructure and advanced reporting tools.
A key focus for us is the emerging Bitcoin Layer 2 ecosystem. We successfully launched support for Stacks earlier this year, and we're proud to be among the first to support Babylon Chain, which is currently launching. We aim to provide institutions early access to these innovative protocols, ensuring they can participate securely and efficiently.
We also remain deeply committed to supporting major existing protocols, particularly Ethereum and Solana. For Ethereum, we're one of the largest independent stakers, managing approximately 5% of all staked ETH. Our track record includes zero-slashing events, highlighting our commitment to security and reliability. For Solana, we're bringing the same protocol expertise and engineering excellence we demonstrate with Ethereum. We focus on providing institutional-grade staking services, ensuring high uptime and optimal performance for Solana validators. We are committed to continuous innovation, exploring new protocols, enhancing infrastructure, and maintaining cutting-edge security.
For more information about the partnership and the services offered, please visit Rakkar’s official website and Figment’s official website.
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