Coinbase announces that it will offer ETH2 staking rewards for UK users
Coinbase, the crypto exchange operator, said Thursday that it will launch ether staking rewards for its customers in the United Kingdom.
A waiting list for the product has gone live today with a full launch expected soon. Customers will be able to stake any amount and can earn rewards on a portion of holdings rather than their entire balance, should they wish to.
Coinbase began offering staking rewards in 2019 with Tezos and Cosmos.
The move was made possible by ETH2, an upgraded version of the blockchain, and will offer users an interest rate of up to 5% annually on ether holdings.
“We have witnessed a huge rise in customers purchasing ether in recent months and so are delighted to be in a position to offer them staking rewards for this asset,” said Marcus Hughes, general manager for the U.K. and EMEA region.
To stake their ether, customers will need to first convert their holdings to ETH2. These assets are then adding to a so-called ‘staking pool.’
Coinbase will manage this process for its customers in the hope of making the product more accessible. The company said in a press release that running a validator independently requires a stake of at least 32 ETH (roughly $100,000) and significant technical capability.
“We believe that, in simplifying staking, which is very complex to do individually, we can play a role in widening access to this key part of the cryptoeconomy,” Hughes added.