Ethereum EIP-8222 aims to enhance validator privacy, institutional staking faces a balance between cost and compliance

Odaily reported that Ethereum Improvement Proposal EIP-8222 plans to separate staking deposits and withdrawals using a cryptographic mechanism based on STARK, and to re-anonymize validators in order to reduce the traceability of validator activity. Currently, about one third of ETH is staked.

Thibault Dubuis, Head of Staking and Decentralized Finance Products at Sygnum Bank, stated that at present, deposit addresses, validators, and withdrawal credentials form visible links, making institutional positions, entry times and staking strategies nearly public.

This proposal is still under discussion and has not yet been scheduled for deployment. Its design may involve arrangements such as fixed deposit denominations and withdrawal waiting periods. Institutional users may have to bear higher execution costs, process delays, and compliance tasks.