Coinbase Prime Supports ETH Staking For US
Coinbase Prime just added ETH to its staking list for US institutional customers and keeps the withdrawal keys in the company’s cold storage.
According to the announcement early this morning, institutional customers can now create wallets, decide on staking amounts, and start staking on their Coinbase Prime accounts.
Coinbase “makes sure customer funds are the highest priority.” They added that all withdrawal keys are kept in the company’s cold storage and that staking transactions must complete consensus before they can be executed. This means they must be added to a blockchain before a transaction can be considered valid.
Coinbase Prime is also opening staking for a number of other crypto
Staking is only possible on blockchains using the Proof-of-Stake consensus mechanism, forcing network participants – known as validators or “stakers” – to “lock up” “a certain amount of their tokens. Currently, Ethereum is in transition to ETH 2.0 called “The Merge”, if all goes according to schedule until September, ETH mining will be stopped indefinitely from here.
Staking allows investors to earn profits from their cryptocurrencies by committing them to an asset pool, helping to support the liquidity and functioning of the blockchain ecosystem. On some platforms, investors can earn up to 20% annual return on their crypto savings.
The proof-of-stake consensus process, which requires network users known as validators or “stakers” to “lock up” a specific quantity of their tokens, is the sole consensus mechanism that makes staking possible on blockchains. By requiring validators to keep a financial stake, they are deterred from acting in a way that could endanger the network and subsequently lower the price.
Because both validation processes are currently active, Ethereum is shifting from a proof-of-work to a proof-of-stake blockchain system. The changeover, dubbed “The Merge,” is anticipated to take place in September, after which Ethereum mining will cease entirely.
Along with other cryptocurrencies, Coinbase Prime also stakes for Solana, Polkadot, Cosmos, Tezos, Celo, and others.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews