Coinbase Custody Starts Offering Tezos Staking Services as the First Asset with MakerDAO to Follow
Coinbase custody has just launched staking support for Tezos (XTZ) and soon it will start to do it for MakerDAO. In a recent blog post released by Coinbase, they inform that Coinbase Custody clients will have the possibility to stake different tokens. Now, they are offering support for Tezos and in the next weeks, they will be adding support for Maker (MKR).
Coinbase Custody Launches Staking Services
Coinbase Custody aims at offering services to institutions to store their crypto assets and also be able to stake these virtual currencies. This would allow a large number of investors to participate in the most popular crypto networks.
Coinbase wrote in the blog post:
“We launched Coinbase Custody with a simple thesis: institutions need a regulated and trusted partner to help them store their crypto assets. That approach has helped us scale to more than 60 clients and $600 million in assets under custody.”
— Coinbase Custody (@CoinbaseCustody) March 29, 2019
There are different digital assets that work with a Proof-of-Stake (PoS) consensus algorithm. They use “staking” as a way to protect and secure the blockchain. Users receive a reward from mining blocks and those holding blockchain’s tokens can participate in this process.
Due to the fact that there are several risks to actively participate in staking activities in the crypto space, institutional investors and larger traders decided to wait outside the market. Coinbase is now providing the necessary infrastructure for these firms to be able to have a larger influence in the market. Coinbase explains that there are no other staking services that offer their track record of security and regulatory compliance.
“The launch of Tezos staking through Coinbase Custody serves an acute need that existed up until now: a way for institutional participants who rely on a secure, offline custodian to take an active role in the network,”
commented Kathleen Breitman, co-founder of Tezos.
Coinbase explains that they have decided to offer Tezos as the first staking asset because of the DPOS architecture it has and the high demand from current clients in the space. The Tezos design has also been built in order to keep clients asset properly protected. Moreover, Coinbase Custody’s customer’s assets are also protected by insurance policies provided by the largest insurance providers around the world.
It is worth mentioning that Coinbase runs its own nodes and also validators. These are subject to the same security and infrastructure standards that the whole exchange currently enjoys.
In the future, specifically during the second quarter of the current year, they will also be launching Maker and Tezos voting. MakerDAO is also one of the most important and respected projects on Ethereum (ETH). There are also more than 200 initiatives integrating the Dai stablecoin.
As Coinbase mentioned in its blog post, they are working side by side with the MakerDAO team so as to ensure the offline storage works seamlessly with the VoteProxy smart contract. Rune Christensen, the founder and the CEO of MakerDAO, explained that decentralized governance is a fundamental aspect to the success of their project. Coinbase Custody is going to be providing this essential service for institutional holders to participate in the ecosystem.
At the time of writing this article, Maker (MKR) is the 16th largest digital asset in the market. Despite Coinbase’s announcement, Maker is the worst performing virtual currency among the top 40. Each MKR coin can be bought for $692 and it has a market capitalization of $692 million.
Meanwhile, Tezos is the 19th largest cryptocurrency in the space with a market capitalization of $606 million. Each XTZ can be purchased for around $0.916. In the last 24 hours, Tezos has been the best performing asset in the top 20.