Coinbase’s Tezos Staking Rewards Now Available In 4 European Nations
- Coinbase users in the U.K., France, Spain and the Netherlands are now eligible to earn interest on their XTZ holdings.
- According to the exchange, its users have so far earned more than $2 million in XTZ staking rewards.
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Popular cryptocurrency exchange Coinbase is expanding its Tezos (XTZ) staking services to its users in the U.K. and several European countries, the company said in a blog post on 28 May.
According to the announcement, Coinbase customers in the U.K., France, Spain and the Netherlands are now able to earn interest on their XTZ through the exchange’s proprietary staking service. Coinbase has estimated that currently the annual percentage returns for XTZ staking on its platform is around 5 percent, a number generated based on the rewards its customers have earned in the past 90 days.
The blog post reads:
“Coinbase is offering an easy, secure way for U.K. and certain EU customers to actively participate in the Tezos network. While it’s possible to stake Tezos on your own or via a delegated staking service, it can be confusing, complicated and even risky with regard to the security of your staked Tezos.”
The Tezos staking feature first became available on Coinbase in November 2019, when the exchange launched the XTZ staking rewards for its U.S. customers. According to the Thursday blog post, Coinbase users have already earned more than $2 million through this new and lucrative alternative to more traditional investments, such as equities or bonds.
Staking refers to the process of locking up a crypto asset on a Proof-of-Stake (PoS) blockchain in order to help maintain the operations of the given network, and by doing so, participants can earn a form of “interest” on their holding. Unlike a Proof-of-Work (PoW) system, validators in a PoS network are selected algorithmically, based on the number of tokens a given node has deposited as collateral (staked). While token holders can actively participate in staking their own tokens themselves, many choose to use a delegated staking service, or an integrated one on a crypto exchange.
While Coinbase’s staking service is integrated into the exchange itself, other companies decided to go the other way. Last year, major cryptocurrency exchange Binance launched a dedicated staking platform for its customers, which allowed its customers to deposit their token holdings and earn rewards on them.
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- The court ordered a phased liquidation process, which allows the bankruptcy estate to sell $3.4 billion worth of digital assets over a certain period of time.
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- When asked how he came to that conclusion, the SEC staff member reportedly said “we’re not going to explain it to you, you need to delist every asset other that Bitcoin”.