Challenges and opportunities for institutional integration of restaking in 2025: Report
The post Challenges and opportunities for institutional integration of restaking in 2025: Report appeared on BitcoinEthereumNews.com.
Restaking emerged from the dust and quickly gained traction in late 2023. It is adopted mainly by retail investors, while institutional investors are only beginning to explore this niche. Several factors still hinder the institutional adoption of restaking, which include the lack of standardized risk assessment methods and the operational complexity associated with validator and protocol management. In the recent report, P2P.org, Cointelegraph Research outlines the developmental path of restaking and argues that the eventual institutional integration of restaking products is inevitable despite the uncertainties. The report commences by breaking down the fundamentals of restaking, its core risks and emerging risk-management frameworks. It discusses the evolution of native restaking through distributed validator technology. It also analyzes the challenges institutions face in yield generation today and explores how restaking can address them. Read the complete in-depth examination of control models, validator technology and adoption barriers in restaking. Download the report for free here. Operational challenges of restaking The institutional approach to restaking differs significantly from that of retail participants. Institutions require streamlined management processes and robust risk assessment models. Most restaking protocols have yet to implement these features at scale, which does not suit institutions’ purposes. The new risk vectors introduced by restaking are among the primary obstacles to broader adoption. These risks are difficult to quantify, as the ecosystem lacks historical slashing data and standardized failure scenarios. Beyond exogenous risks, such as smart-contract vulnerabilities or market volatility, the most direct and consequential threat remains slashing. Slashing is designed to deter valid economic attacks in proof-of-stake networks. It occurs when a validator or operator violates the rules, whether through a deliberate attack or an unintentional failure. In restaking, slashing is an even more significant risk than in traditional staking, because the stake can be delegated to multiple networks simultaneously. Each AVS…
Filed under: News - @ August 13, 2025 8:28 am