The global cryptocurrency exchange platform announced that its U.K. customers will now be able to earn staking rewards on Ethereum 2.0. According to a press release published on 2 September, Coinbase has opened up a waiting list for the new feature as it awaits its rollout “in the near future.”
U.K. customers will be able to convert their ETH into ETH2 and stake them directly on Coinbase and earn an annual percentage return (APR) of up to 5%. The assets are added to a staking pool which will help secure the Ethereum 2.0 blockchain network and generate rewards for stakers. Coinbase will handle the entire staking process on the customers’ behalf, making it accessible to a large number of users.
The exchange first offered staking rewards for Tezos (XTZ) and Cosmos (ATOM) in 2019 and has decided to expand its offering due to rising demand. There will be no minimum amounts required to stake ETH2, lowering the barrier from the 32 ETH required to run a validator node on Ethereum 2.0.
Marcus Hughes, the General Manager of U.K. and EMEA, said that Coinbase recently witnessed a huge rise in the number of customers purchasing ETH through the platform. Thanks to its position on the market, the company is now able to offer all of those users the ability to earn rewards for staking those assets.
“In the current climate, a return of 5% is incredibly competitive and, given the success of our existing staking rewards programs we expect ETH2 staking to be highly popular amongst our UK users,” he said in the company’s press release.