Cryptocurrency platform Coinbase has announced users will now earn rewards just by holding tokens, starting with Tezos (XTZ).
In an official blog post, Coinbase stated U.S. customers can now stake their crypto with an estimated five percent annual return.
“Staking lets you earn income with your crypto by participating in the network of a particular asset,” Coinbase stated.
“When you stake your crypto, you make the underlying blockchain of that asset more secure and more efficient. And in exchange, you get rewarded with more assets from the network.”
Because XTZ utilizes a consensus mechanism known as proof-of-stake, the network rewards users for holding onto its token, thus assisting in protecting the network.
“With today’s launch, Coinbase is offering an easy, secure way for anyone to actively participate in the Tezos network,” Coinbase wrote.
“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. We’re changing that with staking rewards on Coinbase.”
With Coinbase staking rewards:
• You can begin earning rewards on your crypto. The current estimated annual return for Tezos staking on Coinbase is ~5%. You’ll see your pending rewards increase in real-time in the app, and once your initial holding period completes (35–40 days), you’ll receive rewards in your account every 3 days.
• You will always maintain control. Your Tezos always stays in your wallet; you just earn rewards while keeping your crypto safely on Coinbase. You can opt out any time you want.
Tezos will also be added to the Coinbase Earn program, which intends to educate its users about cryptocurrency, rewarding participants with XTZ for completing tasks.
“You shouldn’t have to be an expert crypto trader to grow your crypto wealth,” Coinbase stated.
“Offering simple ways for our customers to earn crypto through staking is an important step in building an open financial system. You can learn more about staking rewards on Coinbase at coinbase.com/staking.”
In March, Coinbase Custody deployed staking for both Tezos and decentralized finance token Maker (MKR).
Currently, Coinbase Custody predominantly serves institutional clients holding substantial crypto.