Coinbase and others introduce Node Operator Standards Recognition (NORS) to attract institutions to participate in Ethereum staking.

A consortium of cryptocurrency companies, including Coinbase and Blockdaemon, has launched a new node operator standard called NORS, aiming to attract more institutional investors to participate in Ethereum staking.

Coinbase Collaborates with Multiple Crypto Companies to Launch NORS Certification

The NORS (Node Operator Risk Standard) was developed by Alluvial in collaboration with several companies including Coinbase, Aon, Blockdaemon, Chainproof, DV Labs, Eigen Labs, Figment, Galaxy, Liquid Collective, Nexus Mutual, and Staked, to establish a set of collaborative standards for operational security and risk management within the Ethereum node ecosystem.

According to a report by Cointelegraph, the purpose of introducing the NORS certification is to provide assurance to institutional investors and ensure the elimination and reduction of potential risks. Node operators seeking NORS certification will be assessed by independent auditors based on six categories in the risk control matrix, including prevention of slashing, change control, disaster recovery/business continuity, physical layer controls, infrastructure, and private key management.

Note: Slashing refers to penalties imposed on validators who attempt to compromise network integrity or operate improperly.

Evan Weiss, COO of Alluvial, stated:

"As large, complex financial institutions seriously engage with public blockchain networks, establishing security standards that meet institutional expectations is crucial for easier adoption and utilization of this technology."

According to their press release, NORS claims to meet the requirements of the Big Four accounting firms and traditional institutional certifications, following AICPA audit standards, SOC1, and other widely adopted due diligence standards.

Will the Increasing Amount of Staked Ether Attract Institutional Participation to NORS?

Although the Ethereum spot ETF was officially approved and launched in the U.S. at the end of July, staking was ultimately excluded from the proposal, indicating some skepticism from the SEC regarding staking.

According to data from Beacon Chain, the amount of staked Ether continues to grow, increasing by over 5.29 million ETH since 2024, a growth of 18%, reaching 34 million ETH.

Lachlan Feeney, Founder and CEO of Ethereum infrastructure company Labrys, mentioned that institutional interest in Ethereum staking may not have emerged yet, as other assets offer higher returns with potentially lower risks.

"Coinbase currently offers an annual yield of 2.06% for ETH staking. This is 3% lower than what you would earn from some risk-free U.S. Treasury bonds."

For many institutions, the custody and staking of digital assets remain significant challenges due to their complexity. With the launch of NORS, it remains to be seen whether this standard verification can attract more institutional participation as interest rates decline and the crypto industry continues to mature.