Figment witnesses fivefold growth in Q1, passes $15 billion staked

Institutional staking infrastructure provider Figment witnessed record year-over-year growth in the first quarter of 2024 amid the launch of Ethereum and Solana staking ETPs, the firm says.

Figment generated fivefold growth in Q1 compared to the same period in 2023, passing $15 billion in staked assets under management from over 500 institutional clients, according to a statement shared with The Block.

"At Figment, we recognize the priorities of our customers, who are increasingly seeking trust, risk-adjusted rewards and assurance in navigating the complexities of the blockchain landscape,” Figment CEO and co-founder Lorien Gabel said.

“Figment’s foundation is built on these principles, and we take pride in guiding our customers through these uncharted waters and an ambiguous regulatory environment. Addressing their needs with transparency, security and compliance remains at the forefront of our mission," Gabel added.

Figment’s European expansion

During the quarter, the Canada-headquartered company established Figment Europe Ltd, a UK-based entity, further to its expansion into the Asia-Pacific region in 2023.

In collaboration with financial services provider Apex Group, Figment Europe went on to launch Ethereum and Solana staking ETPs on the SIX Swiss Exchange in March, as The Block previously reported.

The Figment Ethereum Plus Staking Rewards (ETHF) and Figment Solana Plus Staking Rewards (SOLF) products are designed to offer institutions convenient access to staking rewards through traditional brokers or banks under a familiar ETP wrapper.

Staking rewards on Ethereum and Solana are incentives received for locking up the respective cryptocurrencies to support the operation and security of the blockchain networks. Ethereum and Solana were prioritized for the ETPs due to strong demand from some of Figment’s largest customers, Gabel told The Block at the time.

Figment’s European growth efforts also included adding validators in Ireland, as part of the firm’s deliberate isolation strategy for regions to operate independently — preventing double signing and slashing events, the team said.

Double signing occurs when a validator signs conflicting blocks on a chain, which can be malicious or accidental. Slashing is a penalty mechanism used in Proof of Stake blockchains, designed to encourage honest validator participation in the network. Validators that engage in dishonest activities such as double signing forfeit part of their staked tokens which they put up as collateral.

Plans for the year ahead

Building on the Q1 results, Figment said it plans to accelerate growth by focusing on a new product offering called Figment Vaults, alongside Ethereum restaking capabilities.

Figment Vaults are designed to simplify institutional ether staking, enabling clients to stake any amount of ether, maintaining the privacy of the funds without pooling or commingling assets, the team stated. Clients also have the flexibility to choose the geographical location of their validators.