TBW - Kean Gilbert (Lido Finance): "Institutional confidence in Ethereum has never been stronger".

The Big Whale: To begin with, can you explain what Lido Finance is?

Lido Finance is a liquid staking protocol for the Ethereum blockchain. Our role is simple: we enable holders of ethers, Ethereum's cryptocurrency, to participate in staking (i.e. securing the Ethereum network in exchange for a reward) while maintaining the liquidity of their assets.

Concretely, when you stake ETH with Lido, you receive stETH in exchange, a token that can be used in DeFi while generating a return.

How is Lido doing, business-wise? Where do you stand in April 2025?

The situation is positive. We have developed a robust ecosystem around Lido Institutional, focusing on the fundamentals. Our collaboration with various custodians, MPC wallet providers and technology partners aims to simplify staking as much as possible for players in the crypto universe and traditional finance.

On this second point, that of traditional finance, discussions about ETPs and ETFs are multiplying. I'm convinced that liquid staking will play a crucial role in the rise of ETFs with proof-of-stake protocols like Ethereum.

You mentioned partners, particularly custodians. What is the current situation? What are the main challenges and who are your partners?

A number of major custodians have already joined us: Fireblocks, Copper, Hex Trust... and other major QCs in the US are in the process of being integrated. We expect to finalise all integrations by the end of the year.

The main challenge remains education. The distinction between native staking and liquid staking is not yet clear to everyone. My role is to clarify: although native staking is essential, blocking ETH for a 3% return is not optimal for an institution. That's where Lido comes in: we stake your ETH and you get usable stETH.

For the 70+ companies subscribing to The Big Whale reading this interview: why should you be interested in Lido and liquid staking?

First, Lido is the undisputed leader in liquid staking. For any institution interested in this vertical, it is natural to turn to the market leader.

Secondly, our liquidity is unrivalled. Institutions focus on two aspects: the volume of sales possible and the speed of execution. On these points, Lido is unrivalled in terms of TVL, which explains the current strong institutional take-up.

Yield is often mentioned. In practical terms, what can you expect from liquid staking today?

stETH offers around 3% yield, similar to native staking. But its real strength lies in its versatility.

It can be used in DeFi, curly, restaké, etc. Depending on the strategy, yields can reach 10%. Institutions also use it as collateral on centralised platforms. This is a major advantage because, unlike USDC for example, it generates a continuous return.

I was recently at the Digital Asset Summit in New York, where I met many financial institutions interested in staking. How far have we really got? A simple test phase or a serious commitment?

I was there too! The interest in staking is obvious. We've moved on from theoretical discussions to concrete action.

My weekly exchanges with issuers, asset managers and custodians confirm that it's a priority, particularly for those who believe in ETH. Staking is becoming a matter of course.

Do you have any precise figures? How many institutions are currently using Lido?

About 25% of our TVL comes from institutions.

An encouraging indicator: despite market fluctuations over the last three months, our net flows have doubled between Q4 2024 and Q1 2025. This demonstrates the serious commitment of institutions to liquid staking, with a long-term perspective.

What remains the main barrier to widespread adoption? Is it simply a question of time?

It's more nuanced. In Europe, the regulatory framework is favourable, with staking ETPs already in place. The challenge is above all one of education: explaining why Lido has been an institutional grade since its inception.

In the United States, regulatory vagueness remains a major obstacle. But discussions are progressing, particularly on the integration of staking into ETFs. Liquid staking will naturally follow. Regulation and education are our two priorities.

You mentioned ETPs and ETFs. How do you see the situation developing? What is Lido's plan in Europe?

Europe already has several ETPs of ETHs staked, but they are generally only 50% staked to maintain a liquidity reserve. With native staking, withdrawals can take 7 to 9 days depending on the queue.

ETH allows 100% staking thanks to its immediate liquidity. This is a decisive argument for issuers: an optimised product with a better potential yield (1.5% to 3%). This is one of our major advantages for ETP issuers.

And what about regulation?

We have made considerable progress. Our discussions with European regulators - BaFin, Finma, etc. - and the stock exchanges are progressing well. - and the stock exchanges are progressing well. The path is clear, with many projects in development. We hope that the US will follow suit.

As the leader in staking, how are you dealing with the growing competition in the institutional segment?

The majority of competitors are focusing on native staking (level 1): Figment, Chorus One, P2P, etc. On liquid staking, however, our depth of liquidity remains unrivalled.

Competition is intense in native staking and should lead to consolidation as institutions seek the lowest fees. Spreads are being played out in basis points, putting considerable pressure on node operators.

What are your plans for innovation?

We have just announced Lido V3, a major development: we are moving from a liquid staking protocol to a genuine staking infrastructure.

StVaults, the pillars of V3, are customisable vaults that allow institutions to choose their node operator and custodian. This meets a specific demand: some want stETH while retaining control over the destination of their stashed ETH.

Crucial point: we are preserving the unity of liquidity. There will be no distinction between "institutional" and "retail" stETH: everything remains unified.

When do you plan to launch?

We are in the testnet phase, with a rollout planned for the end of Q3 2025.

We recently spoke with members of the Ethereum Foundation. Despite the strength of the Ethereum ecosystem and its many projects, questions persist: liquidity fragmentation, ETH token performance, investor and builder confidence. What impact could this have on Lido or staking in general?

In fact, these points are crucial. From a price perspective, ETH has certainly underperformed, but overall sentiment remains positive, particularly on the institutional side. The funds I meet share one conviction: Ethereum remains promising over the long term. Personally, I am convinced that Ethereum remains the most capitalised ecosystem - and that remains the case today.

With regard to the structural challenges of the Ethereum Foundation, significant progress has been made in recent months to improve perception. Initiatives such as the Enterprise Ethereum Alliance and Etherealize are helping to structure business development. The environment remains complex, but the trend is improving. This fundamental work will bear fruit.

Concretely, what impact does an ETH below $2,000 or above $4,000 have on Lido? Beyond cash flow, what about the overall dynamics, particularly institutional?

Price is not our primary concern. I'm concentrating on developing the Lido Institutional ecosystem. Price variations concern traders. Our mission is to maximise institutional adoption of stETH.

What message would you give to financial institutions interested in crypto? Why focus on staking rather than other investments such as equities? We are organising an upcoming event on companies holding Bitcoin in treasury. What makes staking relevant?

Staking offers a unique advantage: a return of around 3% while maintaining exposure to the price. Many institutions already hold ETH in cash, but without staking, this asset remains unproductive.

Native staking, which locks in ETH for a 3% return, is interesting but limited. Liquid staking, on the other hand, opens up new possibilities: use as collateral, hedging, rapid exit if necessary. This capital efficiency is the major advantage for institutions.

Restaking was much talked about last year. Despite its topicality, the momentum seems to be slowing. I spoke to Rock from EtherFi and Nadia from EigenLayer in Denver, who were talking about the need for a new dynamic. How do you see things developing? How can we get the incentives going again?

That's a valid question. We need to look at the different levels: level 1 (native staking), level 2 (liquid staking) and level 3 (restaking). Most institutions are still at levels 1 or 2. Restaking is still too new for them. A major educational effort is needed.

Let's be realistic: institutions are not sensitive to loyalty points or airdrops, which are more attractive to individuals. The priority is to clarify use cases and step up education about restaking before we can hope for institutional adoption.

What is your long-term vision for Lido, particularly with regard to institutions? Do you aspire to become the benchmark platform for on-chain returns?

Our vision is simple: the success of Ethereum and the success of Lido are inextricably linked. Lido and its contributors are working towards the success of the Ethereum ecosystem through liquid staking. Our mission is to support this growth, and my role is to promote Lido to institutions to maximise adoption of the protocol.

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