Coinbase Leads Wall Street to Brave New World of Crypto Staking

gepubliceerd op by Coindesk | gepubliceerd op

Coinbase Custody is offering staking services to institutional clients, starting with Tezos.

Since staking requires some funds to be kept online, Coinbase will put up its own coins, assuming the risk.

Coinbase's custody arm is trying to entice its institutional customers into the brave new world of staking crypto assets for profit.

To win over institutional investors who might be unsure of the risk/reward profile of PoS, Coinbase Custody is guaranteeing to its customers that all staked coins will stay in fully-insured cold storage.

"The way we are doing that is Coinbase Custody would go and buy $10 million worth of Tezos and post that bond so it's our funds that are at risk, never our clients'. So we could suffer a loss if we were to get hacked, but our clients' funds will always be safe," said McInvale.

To be clear, though: The staking service Coinbase Custody is providing with XZT, and other blockchains down the line, is separate from tokens under consideration for listing on the company's exchanges.

The risks associated with staking are more to do with losing out on rewards or being shut out of staking cycles if the keys are stolen.

Battlestar, like most the other staking service providers, is not operating segregated accounts Rather it operates staking pools where participants benefit from scale.

The Coinbase model might be okay for the "Set-it-and-forget types," he said, but Tezos assets held in non-segregated accounts can net 12.5 percent to 14 percent a year, Stone claimed.

Coinbase said institutions it has talked to were certainly optimistic about staking networks, particularly given the dismal appreciation in asset prices of late.

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