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Today, we are honored to be joined by Stephen Leahy, a highly accomplished growth-focused Sales and Operations executive with a deep background in both traditional finance and digital assets. Stephen began his career in operations and FX derivatives for institutional asset management firms such as Wellington Management and State Street Global Advisors, eventually transitioning to the blockchain space in 2017. His diverse experience spans over two decades, with leadership roles in FX risk management, product and business development, and capital markets.
Throughout his career, Stephen has held pivotal roles at companies like Circle, where he helped scale the USDC stablecoin to an impressive market cap of $55 billion, and Kiln, where he currently leads the expansion of blockchain staking services in the Americas. He also served as the Managing Director for ndau (Oneiro Inc.), a Layer 1 blockchain project, and was the Chief Operating Officer at FX Primus, where he led a successful turnaround of a $30 million currency/OTC derivatives brokerage.
In addition to these roles, Stephen has founded and grown several companies, including CMAP, which was sold to oneZero Financial Systems, where he later launched their largest revenue-generating division, and BackBayFX, a leading Introducing Broker in the currency markets. He also founded United Global Markets Group, a Futures Commission Merchant focused on FX trading.
Stephen’s entrepreneurial vision and leadership in both traditional and decentralized finance make him a key figure in the evolving digital asset landscape. We look forward to diving into his insights and exploring his journey across these cutting-edge industries.
Stephen Leahy: James, thanks. Happy to be here with you. Thanks for the opportunity to speak. My name is Steve Leahy. I recently joined Kiln to head up expansion here in the Americas. Formerly, I worked at Circle for a number of years in their business development team focused on capital markets use cases. Prior to that, I helped build a layer one in the cosmos ecosystem. That kind of started my career in crypto in about 2018. Before that, I spent a number of years building order writing and risk management platforms in the foreign exchange world. So yeah, I've always been doing FinTech, and it's always had my attention. Like I said, I joined Kiln about four months ago to help out with US expansion.
James (CryptoBit Mag): When was the platform originally launched, and what was the motivation behind its creation?
Stephen: Kiln was really founded in 2018. It had a slightly different name and slightly different objective. In 2021, when Ethereum moved to proof of stake, Kiln really found its way. Since then, we've been one of the leading providers of validation services, starting on the Ethereum platform. We currently still are fairly dominant there. We run about 4.5% of all Ethereum validators out there in the world. Overall, Kiln runs just shy of $9 billion of assets on staking.
The company recently has been giving thought to what staking is and the type of people who are using staking. We've had a slight change to our tagline in that we're offering rewards. We added in DeFi connectivity for some of our clients who were looking for the ability to earn some sort of yield on stablecoins. To be clear, we're not a DeFi protocol ourselves, but we are the connective tissue between users' wallets and a number of different DeFi platforms.
James (CryptoBit Mag): As far as your competitors, what do you think you guys bring to the market that they don't? What is your advantage over them?
Stephen: You know, it's a very competitive field, staking. For Kiln, when we started out, fortunately, the founding trio really recognized that institutional adoption was coming. Maybe it wasn't quite as visible to everyone back then, but they saw it. So Kiln has been built from the beginning to focus on institutional-level clients. We are SOC 2 Type 2 compliant. Our smart contracts are audited. We publish all our trust and security center information online.
For us, it started with a recognition that this is not a hobby. This is a service that we provide to institutional players for whom they are oftentimes fiduciaries for other people's assets. So Kiln took that tack from the very beginning. We're able to attract an incredibly talented team of engineers, truly deep DGen engineers and developers who work for Kiln in our Paris office. That helped us set apart. When you have those types of employees who are building the software, who are monitoring the software, who are building our anti-slashing protocols, you end up with better performance too.
Thinking of staking a while ago, it was kind of hobbyist who wanted to help keep the networks going and be a vital part of the network. Now it's driven more towards institutions, so that is a mission-critical type of software and service that's being run now. Kiln has always had a focus on that.
In addition to the true institutional focus up front and the associated performance that comes along with that, Kiln's really interested in building out this world of decentralized financial services. We're right now on, I think, 44 different proof of stake protocols. We're running validators live and with clients. We've gotten involved in Bitcoin staking pretty early on, and we're live with a couple of the different protocols already.
Then there's Eigenlayer restaking. Kiln, again, as would be expected with a bunch of deep experts in decentralized technology, finds restaking and what Eigenlayer is building, what Sybil is building, fascinating to our crew. So we were fairly early on in the Eigenlayer staking world as well.
James (CryptoBit Mag): Are you guys involved at all with ETFs? Are they able to come in and do anything with you?
Stephen: So I make the distinction between ETFs here in the US, where staking is not a part of ETFs here, and ETPs, which are in Europe. They do allow for staking. We do serve a couple of the ETP providers over there in Europe. Our expectation is that at some point here in the US, ETF providers will be allowed to stake. That's not just our opinion. That's the firms that we speak with on a regular basis, those ETF providers themselves. They believe it's coming once there's some level of regulatory clarity, legislative clarity.
So we work with all of them, really at this point in time, as a partner, helping their teams research and understand what's happening, what best practices are, why anti-slashing protocols are important, how one can be a better fiduciary while helping to grow the network, decentralize the network, and ensure that these networks are self-fulfilling.
James (CryptoBit Mag): What is the minimum someone can come in and invest through your platform?
Stephen: To be clear, just a nuanced discussion, I wouldn't say that anyone's investing through our platform. We are designed for institutional services, so we offer to asset managers. We also offer to platforms that allow their end users to stake services, and those platforms can be restaking services or liquid token services. We really like the background and the kind of infrastructure on the back of that.
With that being said, oftentimes, if you are staking on platforms that go by different names, Kiln's in the background powering that staking. I will say we also do have a feature on our website whereby you as an individual can choose to stake your ETH, if you so choose to, in a pool of validators.
James (CryptoBit Mag): So really, it may be customized to who comes through your product?
Stephen: Yeah, customization is an important statement. For the types of clients that we work with, again institutional in nature, they've got obligations to their clients. They've got regulatory obligations. We allow our clients to tell us where they would like the validators to be. Whether you want to run some validators on AWS or Microsoft Azure or Google Cloud, fine. We can do that for you. You can tell us where you want that to happen.
We also have clients who say they are security conscious and want bare metal servers. And we say, "Sure, we can handle that. We'll run bare metal servers for you in the data center of your choice." So customization is certainly something that we recognized early on. That's what the true institution is going to need.
I'll even further expand, even down to allowing for white-label staking, so that no one knows we're behind the staking services. Restaking, liquid staking tokens, we make those services available to all sorts of companies out there. So the level of customization is pretty impressive to me. If I think about our products and services matrix, it's almost like four-dimensional, more so than two or three-dimensional.
James (CryptoBit Mag): And so currently, someone can go to you, and everything is up and running? So anyone can come to you right now, any big business, and everything's actually a product that you are live with?
Stephen: Yes, on our website we note all the proof-of-stake chains that we are on mainnet. Again, I believe it's 44 or 45, don't quote me on that right now. And then also, like I said, we've got this DeFi connectivity that's up and running, and we've got Bitcoin staking as well, which is super intriguing.
James (CryptoBit Mag): So you're expanding over time. What are your expansion plans?
Stephen: My role here is to help out with expansion here in the Americas, and that's to add more clients. But also, very importantly, Kiln is always looking for that next interesting protocol. We do a really good job and work hard at making sure we meet those founders and builders who are creating the next wave of protocols.
To do that, it's one thing to meet someone with a unique build happening. For us, the kind of first questions are: Are these builders and founders building with security in mind? Are they building with scalability in mind? Will they be able to pass through our rigorous due diligence process? Then after that, it's really a question of the economics, the addressable market, and what problems they're seeking to solve.
We get the same thing from the institutional clients we talk to. It is security, operational trust, and operational excellence first. Only after it's clear that we can pass through these heavy due diligence questionnaires do we even get to talking about commercials and what we really offer.
We feel the same way about the protocols that are up and coming. Granted, some of them are new and young, and we'll work with them if needed, but that's a critical first step for us: security and operational excellence.
James (CryptoBit Mag): Yeah, I guess you don't necessarily want to jump into something that's new if it's not been tried and true.
Stephen: Yeah, you know, will we help new protocols and hop on testnet with them and give them feedback? 100%. We are decentralists at heart, and we love anything that's going to move this industry forward. But certainly, before there's any sort of talk about mainnet, we're pretty strict about what boxes need to be checked as far as security and operational excellence.
James (CryptoBit Mag): Is there any kind of social media people could follow you on?
Stephen: Yeah, great question. One of the things that attracted me to Kiln is I think our marketing team is excellent, from our CEO on down to our head of marketing, Marie. Just really hard-working, do a great job.
For social media, we host something called Kiln Rendezvous, which we host twice a year in our offices in Paris, where the company is headquartered. That is often tied into Paris Blockchain Week and one other week. So when the world of digital assets comes into Paris, we're hosting in our office, and our CEO, Laszlo, sits down and has one-on-one conversations with industry leaders, first movers in the industry.
It's actually fascinating if you go back and see who he's had conversations with and mark that on the timeline. Then, you know, a few months later, boom, there are headlines on Consensus about new protocols. So we like to think that we get in there pretty early and get to speak with firms early.
You can find Kiln Rendezvous on our website, which is kiln.fi, under our blogs and events. We do a really good job with that.
James (CryptoBit Mag): And is there anything like Telegram where there's a channel, or where people can get news?
Stephen: No public Telegram channel for us. It's really, you can follow us on Twitter, of course. And our website, our blog, comes out on a very regular basis. We're always building, so we find a lot of reasons to put out content. We don't put out content for no reason. We find reasons to put out content.
James (CryptoBit Mag): Great, I think that's it for now. And so what I'll do is I will go ahead and get that all transcribed and then send it over to you guys, and then you can kind of give more feedback on that, and then we can go from there.
Stephen: That works. So I assume with the hat, you're based out west somewhere?
James (CryptoBit Mag): West Texas, yeah. I love it. I got a ranch out there. It's nice being in the wild.
Stephen: I'm a mountain person myself. I'm based in Boston on the east coast.
All interview transcripts have been meticulously transcribed by Stylo.Network, ensuring accuracy and clarity in every detail.
https://www.youtube.com/channel/UCegmzwd40b91ikGzZBgAa4w
https://www.linkedin.com/company/kiln-fi/
In the ever-evolving world of blockchain and cryptocurrency, staking has emerged as a popular method for investors to earn rewards on their digital assets. Among the platforms leading this space, Kiln.fi stands out with its innovative approach to staking solutions. Here's a dive into what makes Kiln.fi a go-to platform for both individual and institutional investors.
Kiln.fi offers an intuitive one-click staking dApp, which simplifies the staking process to a degree where anyone, regardless of their technical prowess, can participate. This approach aligns with the broader mission of making blockchain technology accessible, reducing the entry barriers for users interested in earning through Proof of Stake (PoS) networks.
One of Kiln.fi's standout features is its provision for dedicated validators. For those staking large amounts or institutions requiring more control, dedicated validators ensure that your stake doesn't get diluted in a larger pool. However, for smaller investors or those looking for flexibility, shared validators offer a cost-effective way to participate in staking without needing to manage a full validator node.
Kiln Onchain introduces a white-label staking solution that's entirely managed on the blockchain. This feature is particularly appealing for businesses like wallets, dApps, and exchanges wanting to integrate staking services without diverting from their core offerings. Kiln's smart contracts handle everything from deposit management to reward distribution, making the process transparent and reducing operational overheads.
Kiln.fi doesn't just focus on ease and accessibility; it's also committed to security and sustainability. By implementing strategies to mitigate risks like slashing in Ethereum staking, Kiln ensures that your assets are as safe as they can be in the volatile world of crypto. Moreover, their approach promotes a more sustainable blockchain ecosystem, aligning with global environmental goals.
Beyond traditional staking, Kiln.fi ventures into the DeFi space, allowing users to engage with lending protocols like Compound directly through their platform. This integration not only maximizes potential rewards but also diversifies the ways users can interact with their assets in the DeFi landscape.
For institutional clients, Kiln.fi provides an enterprise-grade staking solution. This includes full automation of validators, rewards, data analytics, and commission management. Their API-first approach means businesses can seamlessly integrate staking into their existing systems, offering staking as a service to their customers without significant infrastructure overhaul.
Kiln's commitment to innovation is evident in its active engagement with the community and its continuous updates to the platform features based on user feedback and technological advancements. This positions Kiln.fi not just as a service provider but as a pivotal part of the blockchain community's growth and evolution.
Kiln.fi stands as a beacon of innovation in the staking domain, offering robust, secure, and user-friendly solutions for both individual and enterprise clients. Whether you're looking to stake your crypto assets easily, integrate staking into your business model, or explore DeFi opportunities, Kiln.fi provides a comprehensive suite of tools to meet those needs, all while promoting a more secure and sustainable blockchain future.
Kiln.fi is a platform that provides staking services, enabling users to earn rewards on their digital assets through an enterprise-grade staking solution.
Staking on Kiln.fi involves locking up cryptocurrencies in a Proof-of-Stake blockchain to support the network operations, for which users receive rewards. Kiln manages the technical aspects, allowing for both direct staking and through liquid staking pools.
Kiln supports a variety of blockchain protocols, including but not limited to Ethereum, Solana, Cardano, and Avalanche.
While specific amounts can vary by protocol, Kiln aims to lower entry barriers by allowing staking of any amount of ETH, for instance, through their pooling solutions.
Restaking involves using already staked assets (like staked ETH) to secure additional protocols or applications. Kiln.fi supports restaking, enhancing the utility of staked assets without needing more collateral.
Kiln.fi operates with high security, undergoing audits and implementing measures like 24/7 monitoring to protect users' interests. They have also achieved SOC 2 Type II certification, indicating robust security practices.
Yes, Kiln.fi is designed to be user-friendly, offering a one-click staking solution through their dashboard, making it accessible for users without deep technical knowledge.
While Kiln implements various security measures, staking carries risks like slashing (for validator misbehavior) and smart contract vulnerabilities, especially in restaking scenarios.
You would typically start by creating an account, choosing your preferred staking option (like direct staking or through a liquid staking pool), and following the platform's guide to stake your assets.
Yes, Kiln.fi provides enterprise-grade solutions for institutions looking to stake large volumes or integrate staking services into their offerings, including white-label solutions.
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