Crypto custodian Zodia Custody has launched a staking service aimed at institutional investors.

Zodia, which is backed by Standard Chartered, Northern Trust and SBI Holdings, has partnered with blockchain fintech Blockdaemon for the service, which Zodia states is a response to growing institutional demand.

Staking enables digital or crypto asset owners to lock those assets for a set period of time to validate transactions on a proof-of-stake blockchain. In return, those asset owners earn staking rewards.

It is analogous to the bank deposit model that is dependent on proof-of-stake protocols and mechanisms and acts as a source of passive income for asset owners.

According to Zodia, it is the first FCA-registered and bank-owned custodian to offer a staking service for the institutional market.

In contrast, the recent lawsuit in the US by the Securities and Exchanges Commission against Coinbase referenced the crypto exchange’s failure to register its staking-as-a-service offering as one of its 13 charges.

“This partnership with Blockdaemon is how we are evolving staking specifically for institutions. This is staking, without compromise,” said Julian Sawyer, CEO of Zodia Custody.

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