Coinbase Launches Ethereum Staking to US Clients

US-based institutional Coinbase Prime customers now have Ethereum staking options on the platform with assets safe in the company’s cold storage vault. A blog post published today by the firm said, “Clients can create a wallet, decide how much to stake, and initiate staking from the ETH asset page on their Coinbase Prime account.” Staking Lets Investors Earn a Yield on Cryptocurrencies Staking enables investors to commit their cryptocurrencies to a pool of assets and receive a return on their investment, supporting the liquidity and operation of a blockchain ecosystem. Investors can make up to a 20% yearly income on some platforms, which is frequently equated to a high-yield savings account. However, the procedure is not without risks. When investing in staking, investors frequently need to hold their money with a “custodian,” a third party who, in some situations, technically controls the money while it is being staked. Investors lost billions of dollars earlier this year as custodians like Voyager and Celsius filed for bankruptcy in response to TerraUSD’s demise. Coinbase Secures Customer Funds “Securing customer fund is our utmost responsibility,” the blog post stated. It further noted that staking transactions must reach a consensus before being carried out and that all withdrawal keys are kept in the company’s cold storage vault. This means that before the transaction is valid, it must be added to a blockchain. The Proof-...