FalconX, headquartered in San Mateo, California, said on Thursday that it has executed the first forward rate agreement linked to Ethereum staking yield, introducing a new class of interest rate-based derivatives to the digital asset market.

These contracts reference the benchmark provided daily by infrastructure provider Treehouse - the Treehouse Ethereum Staking Rate (TESR). The benchmark is part of the Treehouse "Decentralized Offered Rates" framework, designed to create tools similar to widely used benchmarks (such as Libor or secured overnight financing rates) in a crypto-native version.

Its launch comes at a time of surging staking demand. With billions of dollars flowing into ETFs and corporate treasuries, Ethereum validators entering the queue recently reached the highest level in two years.