Coinbase Custody, a custodian independent entity launched by Coinbase Crypto exchange primarily focused on offering custody and staking service has added Cosmos (Atom) staking services for its clients.
Coinbase Custody was among the first to offer safe, offline staking services, for Proof-of-Stake (PoS) based tokens, allowing its clients to earn staking rewards and participate in on-chain governance process without risking their funds. The announcement was made through an official blog on May 21st.
Cosmos is also a proof-of-stake based blockchain known to offer interoperability between different blockchains. Clients can stake their Cosmos tokens to a validator and in return share the block rewards. Prior to Cosmos staking, Coinbase Custody was already offering staking services for Tezos and Algorand. [Also available on Binance.us and Anchorage]
With the addition of Cosmos, clients would now be able to login to their Coinbase Custody account and stake as much of the Cosmos asset they want. The client would also have the option to chose the delegator either in the form of Coinbase Custody or choose a third-party validator.
How Coinbase Custody Staking is Different From the Rest of The Market?
Coinbase custody makes use of secure offline cold wallets instead of the usual hot wallets, which are used by a majority of the firms offering staking service. Hot wallets are prone to hacking attacks that place the client’s assets at risk of being stolen. Whereas Coinbase Custody offers all its staking services via offline secure wallets.
Coinbase Custody believes its vast experience in offering Tezos staking service makes it one of the most experienced and secure staking service provider. Coinbase's support of Tezos also makes it the biggest validator of Tezos and, coupled with its clean record on security and losses of funds, makes it a reputable solution.
Bryce Ferguson, Product Manager, Coinbase Custody also promised that in case if there is any lapse on their side and slashing takes place, they would cover all the risk and the client would not have to worry about any kind of loss of their asset. Ferguson said:
“Although slashing is unlikely, we want our clients to feel comfortable that in choosing our Cosmos staking service they are choosing an option that aims to mitigate risk.”