Gate News Report, March 24 — CoinDesk columnist Jordan Knecht pointed out that some traditional financial institutions see staking as risky due to potential penalties, outages, operational failures, and unpredictable returns. As a result, they only hold spot ETH or avoid related assets. Knecht mentioned that a new generation of insurance-backed staking products is based on the Composite Ether Staking Rate (CESR) and is underwritten by regulated insurance companies, making staking ETH closer to institutional yield products rather than crypto experiments. It is disclosed that CESR is a daily standardized benchmark interest rate developed by CoinDesk Indices and CoinFund, used to measure the average annualized yield for ETH validators’ staking. Chainproof, in partnership with IMA Financial Group, provides insurance policies that supplement returns when validator rewards fall below CESR and offer payouts in case of penalties or confiscations. These arrangements are also used to support collateralized, rebalanced, and structured strategies based on staked ETH.
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