Digital asset financial services firm BitGo has launched a new staking service for the clients who store their assets with its qualified custodian subsidiary BitGo Trust.
A press release published on Oct. 3 revealed that the new service will initially launch with altcoins Dash and Algorand, with more assets to be supported in the future.
Staking is specific to proof-of-stake blockchains and essentially allows network participants to earn a form of "Interest" by depositing their tokens to both maintain the network and potentially earn rewards.
According to BitGo's press release, rates of return will vary for each specific supported asset - from 7% up to as high as 13% for Algorand.
According to the press release, BitGo has also acquired Hedge - a firm specializing in the development of staking infrastructure.
It is noted that the acquisition forms the core of the new BitGo Staking venture via the integration of Hedge's advanced cryptographic deployments and specialist hardware devices, including hardware security modules.
"We need to provide our clients with the ability to use their assets in custody. Staking provides our clients with returns on their investments without ever moving their assets out of custody."
As Cointelegraph reported previously, staking holdings in a PoS network can yield significant percentage returns.
After staking their coins investors cannot immediately free them up for trading and can therefore potentially miss out on cashing in on their investment at the optimal moment.
Just this month, major cryptocurrency exchange Binance launched a dedicated staking service.
Crypto Custodian BitGo Launches Staking Services for Dash, Algorand
gepubliceerd op Oct 4, 2019
by Cointele | gepubliceerd op Coinage
Coinage
Recent nieuws
Alles zien
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.