MetaMask Introduces Their New Pooled Staking Feature

The company Consensys, which created the well-known MetaMask software wallet for Ethereum, has introduced a pooled staking function that lets wallet users stake any quantity of Ether on-chain.

The StakeWise solution: Consensys developed their pooled staking option by utilising the open-source architecture of the Ethereum liquid staking protocol StakeWise.

This offers enhanced accessibility as MetaMask’s new pooled staking feature will allow anyone to contribute security and earn commensurate staking benefits. Currently, operating a validator on the Ethereum network requires 32 ETH (Ethereum).

However, not all can access it, because pooled staking is being implemented gradually, only a select group of qualified users can now utilise the service. The feature will not be available to customers in the United States or the United Kingdom, according to Consensys, because of regulatory concerns.

It seems logical that Consensys is presently reluctant to offer this product to users in some jurisdictions, given that the US Securities and Exchange Commission (SEC) penalised cryptocurrency exchange Kraken in the past for providing a comparable pooled staking product, although one that was custodial in nature.

Thankfully, increased regulatory clarity—which Congress in the United States is working to achieve—should allow U.S. customers to access these services, even in the unlikely event that pooled staking schemes are classified as investment contracts and can only be made available by registered brokerages.

While MetaMask’s most recent addition is undoubtedly useful for anyone with less than 32 ETH to stake, it is still unclear which user type will choose to stake a little amount of ETH on-chain as opposed to buying liquid staking tokens.