Crypto exchanges Binance, Bitget, and ByBit are reportedly partnering with Sanctum to introduce Solana liquid staking tokens (LSTs), enhancing the accessibility of staked Solana (SOL) on centralized platforms. The LSTs, named BNSOL, bbSOL, and BGSOL, represent a strategic move to offer users liquidity while still earning staking rewards. Binance’s involvement is particularly significant, as it custodies over $4 billion in SOL. This partnership signals Sanctum’s aggressive expansion strategy, with additional collaborations rumored to be in development. While LST adoption has remained stagnant, the involvement of major exchanges could potentially boost participation in the Solana staking ecosystem.

Partnerships with Major Crypto Exchanges

Binance, Bitget, and ByBit Collaborate with Sanctum: Leading crypto exchanges Binance, Bitget, and ByBit are partnering with Sanctum to launch Solana liquid staking tokens (LSTs), according to sources close to the matter. The tokens, dubbed BNSOL, bbSOL, and BGSOL, were teased on social media, sparking significant interest in the crypto community. Sanctum's involvement was further hinted at through cryptic social media interactions and a post from its co-founder, FP Lee.

Significance of Binance’s Involvement

Binance's Influence in the Market: Binance’s partnership with Sanctum is particularly noteworthy, as the exchange holds nearly 33 million SOL for its customers, valued at over $4 billion. While it remains unclear how much of this SOL is staked, Binance's participation represents a major coup for Sanctum, enhancing the credibility and reach of Solana LSTs.

Token Listings and Market Access

Initial Listings and Future Potential: ByBit’s bbSOL token has already been added to Sanctum’s LST list on GitHub, while Binance and Bitget’s tokens are expected to follow. Tokens launched on Sanctum gain access to the platform’s reserve and router, providing deep liquidity by aggregating multiple LSTs. Additionally, Sanctum’s Verified Partners can join INF, a product offering average staking yields from a basket of LSTs.

Expanding Partnerships and Market Impact

Potential for Further Collaborations: The source also hinted at ongoing negotiations with two other centralized exchanges, though specific names were not disclosed. Coinbase, another major player, did not respond to inquiries about potential Solana LST plans. Sanctum’s strategy appears to involve a broad pitch to centralized exchanges, leveraging their massive distribution channels to attract more users to the Solana staking ecosystem.

Predictions for User Growth: FP Lee, co-founder of Sanctum, predicted that the introduction of LSTs on centralized exchanges could attract “millions” of new users. He expressed satisfaction that CEXs are opting for open-source, decentralized solutions rather than building proprietary systems, aligning with Sanctum’s community-oriented approach.

Revenue Model and Market Challenges

Sanctum’s Focus on Growth Over Revenue: Sanctum generates revenue through deposit and swap fees, though an anonymous co-founder emphasized that the current focus is on expanding the LST market rather than maximizing revenue. The infrastructure is already in place to capture significant fee income as the market grows.

Stagnant Adoption of LSTs: Despite efforts from Sanctum and other providers like Jito, Marinade, Jupiter, and Blaze, the percentage of staked Solana held in LSTs has remained stagnant, hovering between 6% and 7% since May. However, if Binance’s substantial SOL holdings were to convert to LSTs, this figure could see a significant increase, potentially revitalizing the market.