Crypto.com Uses Solana Staking and Perps to Deliver 15% Stablecoin Returns

Figment, OpenTrade, and Crypto.com are introducing a novel stablecoin-based yield product tailored for institutional investors. This offering aims to provide high returns without exposing participants to the directional price movements of crypto assets. The product is designed to mirror the economic outcomes of Solana staking but eliminates inherent volatility, historically yielding approximately 15 percent annually based on past performance.

This new product targets a specific segment of institutional investors who are interested in blockchain-native yields but are prohibited from holding volatile assets like SOL due to compliance regulations, internal risk management policies, or limitations with their current custodians. Instead of directly staking tokens, these investors will deposit stablecoins, such as USDC or USDT, and earn yield generated from a hedged SOL strategy.

Figment, which currently manages over $18 billion in staked assets, will oversee the staking operations. OpenTrade will manage the derivatives and the overall risk architecture. Crypto.com will provide segregated custody services, ensuring that investor assets are legally distinct from the company’s own balance sheet.

Investor Takeaway

Mechanism for SOL Staking Yield Generation and Hedging

Traditional staking exposes investors to both the rewards generated from staking and the potential price fluctuations of the underlying token. This new product separates these two components. It achieves this by combining staked SOL rewards with perpetual futures contracts, which are used to hedge out any volatility associated with SOL’s price movement.

Institutions will deposit stablecoins into the product. These stablecoins are then utilized to purchase SOL, which is subsequently staked. Figment will delegate this SOL to validators on the Solana network, enabling the earning of standard staking rewards, which typically range between 6.5 and 7.5 percent. To mitigate the risk of SOL price swings, OpenTrade will execute short positions in perpetual futures contracts. These positions are designed to neutralize any directional price changes in SOL, thereby creating a synthetic profile that offers a stable yield.

The net yield, historically around 15 percent, is derived from two primary sources: standard SOL staking rewards and additional gains realized from managing the futures positions that counteract price volatility. Crypto.com ensures the safekeeping of the staked assets through fully segregated custody accounts. This segregation is particularly crucial for regulated entities that require verifiable asset separation and clear legal claims in instances of insolvency or operational disruptions.

Distinction From Traditional DeFi Lending and On-Chain Yield Strategies

Yields generated through traditional Decentralized Finance (DeFi) often depend on lending pools, the use of leverage, or opaque counterparty relationships. In contrast, the structure developed by Figment, OpenTrade, and Crypto.com operates exclusively with well-defined entities, legally binding contractual agreements, and institutional-grade custody solutions.

This approach offers institutions predictable returns while helping them avoid the risks commonly associated with:

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  Anonymous borrowing pools
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  Smart contract vulnerabilities
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  Insolvent lending platforms
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  Unregulated intermediaries
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  Opaque rehypothecation chains

When combined with transparent staking operations and regulated custody, this product presents a compliance-aligned alternative to more speculative DeFi yield strategies.

Investor Takeaway

Increasing Institutional Demand for Hedged Staking

As the digital asset markets continue to mature, regulated investors are increasingly prioritizing predictable and controllable income streams over speculative gains. Hedged staking products are emerging as a critical link between the stringent requirements of traditional finance and the native reward mechanisms offered by the crypto ecosystem.

Several key factors are contributing to this evolving landscape:

1. Compliance Restrictions Limit Direct Token Exposure: Many institutions face regulatory hurdles that prevent them from holding volatile assets like SOL, even if they are interested in earning staking yield.
2. Growing Demand for Stablecoin Productivity: Institutions holding substantial balances of stablecoins like USDC or USDT are seeking yield-generating opportunities without converting their holdings into riskier assets.
3. Familiarity of Hedged Structures with Traditional Finance: The model of combining staking with derivatives bears a resemblance to established hedging strategies used in traditional commodities and currency markets.
4. Segregated Custody Reduces Perceived Counterparty Risk: Crypto.com’s segregated account structure aligns with the asset protection standards that institutional investors expect.

The product is integrated into Figment’s existing platform and APIs, enabling institutional clients to deposit and withdraw stablecoins at any time, with yield accruing immediately upon deposit.

Implications for the Future of Institutional Yield in Crypto

While retail investors often gravitate towards decentralized yield strategies, institutional participants are increasingly favoring legally structured products that neutralize volatility. The model presented by Figment, OpenTrade, and Crypto.com exemplifies this broader trend towards predictable, compliance-aligned income generation.

If this product gains traction, it could pave the way for similar hedged staking products for other digital assets like ETH, ATOM, or AVAX. This would effectively transform institutional stablecoin reserves into a significant potential source of demand for various staking ecosystems. For the present, this new SOL-backed product indicates a shift in institutional yield markets, moving away from speculative lending and towards engineered, risk-controlled returns built upon blockchain infrastructure.