Wallet service and crypto exchange platform Coinbase recently announced new staking rewards for Tezos.
Coinbase revealed in its latest blog post that it has made staking Tezos (XTZ) more accessible. The US-based company has launched new staking rewards for holders. With it, every eligible customer in the US can generate interest on their Tezos holdings for holding and depositing the crypto in Coinbase.
Earn Revenue Passively
According to Coinbase, staking allows clients to earn revenue passively. Customers earn income by parking their crypto in a digital wallet which will provide support for the token’s network. Staking will reportedly make that asset’s blockchain safer and more efficient. Customers will receive more assets from Coinbase as a reward for using a staking wallet to hold their tokens.
The digital wallet firm added that while users can stake Tezos on their own or by using a delegated service, it’s complicated and could compromise the security of your staked coins.
Coinbase Custody, the exchange platform’s institutional asset custody group, launched the Tezos staking service in March.
Kathleen Breitman on the Topic
Tezos co-founder Kathleen Breitman explained at the time that the rollout of Tezos staking via Coinbase Custody satisfied a critical need. It provided a means for institutional participants who depend on an offline custodian to have a more engaged role in the network.
All Coinbase users with Tezos tokens on the platform will now have the capability to collect about a 5% estimated return for staking the currency. There will be a holding period of 35 to 40 days though. But once the client’s first holding period is completed, the rewards will be deposited in their accounts every three days.
The staking feature is just the latest service Coinbase is offering its customers in the US. The exchange has been aggressively expanding for a while now. Just last month, Coinbase started to allow holders of USD Coin (USDC) who are based in the US to earn 1.25% yearly percentage yield.
Coinbase is one of the most renowned crypto exchanges in America, and the company has been actively working to influence the direction of the country’s digital assets market. It is also active in the development of the country’s regulatory ecosystem.
The company has been pushing for the private sector to take the lead in the digital assets industry. Brian Brooks, Coinbase’s legal head, stated several days ago that the government should fall back and let private companies develop the technology. He believed doing so would result in a more effective dynamic. Meanwhile, the public sector should just focus on implementing monetary regulations.