Unlocking Staked Liquidity on Coinbase Prime

TLDR: Institutions can now circumvent weeks-long ETH exit queues for immediate liquidity with ETH offchain vault transfers on Coinbase Prime.

Here’s how it works: Clients staking ETH in Coinbase Prime can transfer an entire staked ETH vault to a counterparty within the Prime platform. These offchain transfers settle in minutes. This new transfer flow is built on top of Prime’s proven security and consensus framework. Additionally, transfers are automatically reflected in existing statements for both parties.

Coinbase supports both the ability for the sender to transfer staked ETH to the recipient with this new functionality, and for the counterparty to pay in spot ETH or any other asset with existing transfers.

A Solution Built for Institutional Workflows

Institutional staking at scale
For institutions staking at scale, liquidity often comes at the cost of speed or operational efficiency. An institution must unstake their balance, a period that currently takes >10 days for ETH (including sweep delay), before they can access their staked principal or distribute funds to investors. This is a non-starter for many institutional investors, and a major drawback for ETF issuers in particular as they add staking to their funds.

Offchain vault transfers support many of the largest institutional client segments in a meaningful way. For example, ETF issuers would be able to stake a higher percentage of their assets under custody or AUC, while ensuring immediate liquidity to meet redemption requirements. Institutions would also be capable of reacting quickly to changes in market conditions without waiting weeks to months for unbonding stake to become available.

Increasing accessibility for market makers
This solution also enables market makers to tap into a new market. Allowing institutions to seamlessly access liquidity for staked ETH without the constraint of unbonding periods creates capital efficiencies under secure, consensus-driven controls, and clear reporting and audit trails in Prime. Staked funds never leave our secure, qualified custody during the transfer process and the solution creates no additional smart contract risk.

Liquidity Providers
We’re excited to announce that Galaxy has onboarded as one of the initial market markers for ETH offchain vault transfers, so sellers can execute quickly, and avoid the lengthy ETH exit queue. By pairing a self‑service transfer flow with committed market‑making coverage, Coinbase Prime brings dependable liquidity to institutional staking—without adding operational drag.

“Galaxy is pleased to support Coinbase’s institutional clients with deep, programmatic liquidity for staked ETH positions—helping issuers meet redemption timelines while preserving staking performance,” said Harry Austin, Head of Strategic Opportunities at Galaxy. “Vault transfers remove a key operational barrier for institutions and make it easier to run higher stake ratios with confidence.”

“Bringing access to immediate liquidity for staked ETH into our self-serve vault transfer flow means clients don’t have to choose between rewards and liquidity,” said Lewis Han, Head of Staking Sales at Coinbase. “We’re building the most secure solution to trade staked ETH on demand through our qualified custody, clear reporting, and partners who can stand up consistent markets.”

Stake on Coinbase Prime
Coinbase Prime integrates staking with secure custody, trading, financing, and other prime services to provide a turnkey solution for institutions. The combination of our ultra secure staking with an equally robust custody solution makes Prime a one-stop shop for institutions looking to seamlessly stake their assets with a trusted provider.