FalconX, a leading institutional digital asset prime broker, has unveiled the first tradable market for Ethereum staking yield derivatives on October 10, 2025. This innovation utilizes Forward Rate Agreements (FRAs) benchmarked to the Treehouse Ethereum Staking Rate (TESR), providing institutional investors with tools to hedge, speculate, or gain exposure to ETH staking yields.
The launch marks a significant milestone in digital asset derivatives, with initial transactions involving participants such as Edge Capital, Monarq, Mirana, Algoquant, and other hedge funds. Raghu Yarlagadda, CEO of FalconX, stated, "This is a ground-breaking opportunity to give institutional investors well-managed risk exposure and transparency for crypto swap trading." Similarly, Ivan Lim, Senior Derivatives Trader at FalconX, emphasized the step toward integrating institutional-grade risk management.
TESR, published by Treehouse, is a decentralized, consensus-driven benchmark updated daily, reflecting Ethereum's staking yield curve. Brandon Goh, CEO of Treehouse, highlighted that this enables institutions to manage rate volatility, akin to traditional finance benchmarks like LIBOR. The market is continuously accessible, supported by standardized documentation and operational workflows, aiming to enhance liquidity and market stability.