The upcoming Pectra upgrade for Ethereum will transform how institutional staking operates, with key changes to validator consolidation and new prospects for automatic compounding— features that could reduce infrastructure costs by up to 90%, according to Artemiy Parshakov, vice president of institutions at P2P.org.

Decrypt spoke with Parshakov on Wednesday at Consensus 2025 in Hong Kong, tackling how the Pectra upgrade introduces these features and how they could boost the sector.

"For the staking ecosystem, this is a huge one,” Parshakov told Decrypt, adding that, “in comparison with Shanghai, it's on par." While Ethereum’s Shanghai upgrade enabled withdrawals, Pectra brings "special features which will make staking smoother,” growing market share and adoption, Parshakov said.

The upgrade introduces validator consolidation from 32 ETH ($3,067.27) to 2,000 ETH per validator, revolutionizing how institutions manage staking infrastructure.

An operation running 1,000 validators could consolidate to just 16, dramatically reducing operational overhead, Parshakov explained, calling it a “huge, huge difference."

Parshakov added that the firm will be able to offer, "lower fee...