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Staking Tokens are cryptocurrencies that are dedicated to supporting a blockchain network’s security and operations. This include both traditional Illiquid Staking Tokens, and Liquid Staking Tokens (LSTs) where the token holder receives tokenized representations of their stake that can be transacted.
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Separate security master files (SMFs) should be set up to represent Liquid Staking Tokens ( LSTs). These should can be set up the same was as the staked Cryptocurrencies being staked, except with different identifiers and with Underlying Security ID (1348) populated as the Primary Asset ID (14) of the staked Cryptocurrency being staked. LSTs can be transacted using free receives and delivers to adjust positions without generating cash, or buys and sells if cash is needed. The Pledge must be released from the underlying Cryptocurrency when it is no longer staked.