FalconX debuts TESR forwards, giving institutions tools to hedge and manage Ethereum staking yield exposure with Treehouse benchmark rates.
FalconX, the institutional digital asset prime broker, has announced the launch of the first Forward Rate Agreement (FRA) trades benchmarked to the Treehouse Ethereum Staking Rate (TESR).
This marks a significant step in the development of rate-based derivatives for digital assets, offering institutions new tools to hedge, speculate, and gain structured exposure to Ethereum staking yields.
TESR, published by Treehouse, is part of the firm’s Decentralised Offered Rates (DOR) framework. It provides a transparent, consensus-driven reference rate for Ethereum staking, updated daily using on-chain data and expert panel inputs.
By anchoring to TESR, the new forward contracts mirror familiar instruments in traditional finance, such as interest rate swaps and forwards, but are designed for the crypto markets.
“FalconX is proud to launch TESR FRAs, which give institutions access to sophisticated tools for managing staking rate exposure,” said Ivan Lim, Senior Derivatives Trader at FalconX. “This marks an important step forward in integrating institutional-grade risk management in crypto markets.”
The launch has attracted participation from a range of prominent investors and hedge funds, including Edge Capital, Monarq, and Mirana. Their involvement highlights the growing demand for staking rate derivatives and the infrastructure to support recurring participation and liquidity.
“The introduction of TESR FRAs signals a key milestone in building the fixed income layer for digital assets,” said Brandon Goh, CEO of Treehouse. “With TESR and the infrastructure we’ve built through DOR, we’re enabling institutions and staking providers to hedge, price, and manage rate volatility — essential functions in any mature financial ecosystem.”
Unlike proof-of-concept trades, TESR FRAs form part of a live, continuously accessible market. FalconX provides the execution infrastructure, while Treehouse ensures robust benchmark publication, with both firms supporting standardised documentation and workflows to enable scale.
As Ethereum staking yields continue to function as the network’s native interest rate following the Merge, products like TESR FRAs bring a crypto-native equivalent to LIBOR or SOFR, expanding the toolkit for risk management, yield optimisation, and strategic positioning.
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