FalconX has launched the first forwards market tied to Ethereum staking yields, introducing a new class of derivatives for institutions to hedge their exposure to volatile rates. These contracts, which refer to the Treehouse Ethereum Staking Rate (TESR), are a part of a broader initiative to create crypto-native benchmarks similar to traditional financial standards like Libor. The demand for staking has surged, resulting in Ethereum's validator queues hitting a two-year high with 860,000 ETH, worth around $3.7 billion, awaiting validation. Institutional participants in initial trades include firms like Edge Capital and Monarq, though the products are currently not available to U.S. clients. This innovative approach allows long-term cryptocurrency holders to manage staking yield volatility. FalconX emphasizes that the market will have standardized documentation and workflows, fostering deeper liquidity and continuous participation, which contrasts with previous limited pilot programs.

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