Coinbase Introduces Tezos (XTZ) Staking Reward Services to All US Customers
Coinbase has recently announced on its blog that all of its users from the United States will be able to receive staking rewards for the tokens that they hold on the company’s wallets.
Tezos (XTZ) will be the first token that will receive official staking support. All Tezos holders will be eligible to claim their staking rewards, which are set to be around 5%. The rewards will be handed out every three days, which is the approximate time of a cycle in the Tezos network.
In case you are not familiar with this consensus method, proof of stake is a consensus protocol that was originally designed by Vitalik Buterin, the creator of the Ethereum network. Instead of mining tokens like in the Bitcoin network, people who use proof of stake methods simply use their own funds to validate the network and receive small rewards.
Before now, only customers from Coinbase Custody were able to stake this cryptocurrency. As only institutional clients were accepted in this category, though, this limited the access of retail users from the country. During the first two months in which Tezos staking was allowed to institutional investors, the revenues generated were around $7,500 to $8,300 USD.
The official Coinbase blog mentioned these about the staking rewards:
You can begin earning rewards on your crypto. The current estimated 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.
In the future, the company is ready to expand the staking rewards and also list other tokens that can be used in the system. However, the name of no other token that will receive rewards was divulged in the blog post.