Coinbase Prime Offers Ethereum Staking To US Institutions

U.S.-based crypto exchange Coinbase Global Inc COIN is expanding its Ethereum ETH/USD staking offering for domestic institutional clients.

What Happened: In a blog post on Monday, Coinbase said that institutions can enjoy an end-to-end staking experience on Coinbase Prime.

Staking provides a way for institutions to earn passive income on their ETH holdings by accumulating yield on staked funds. Clients can initiate staking directly from their Coinbase Prime accounts after creating a wallet and determining the quantity of ETH to be put up for staking. 

See Also: Binance Says It Lost 90% Of Customers, 'Billions In Revenue' Due To KYC Compliance

As ETH transitions to Proof-of-Stake, validators staking ETH will effectively take over the role of miners in running the network. As such, staking will play a much more important role in Ethereum’s future and rewards from the process could considerably increase. 

Earlier this year, Coinbase said it expects ETH staking yields to rise ahead of 9%-12% APR post the Merge. At press time, yield offered on staking pools had an average reward of 4.08%, as per data from StakingRewards.

Currently, Ethereum staking has a total market cap of $21.5 billion. In a report last year, JPMorgan Chase & Co. estimated that the post-Merge Ethereum 2.0 could create a $40 billion staking industry by the year 2025.

Price Action: According to data from Benzinga Pro, ETH was trading at $1,605, down 5.33% over 24 hours.

Read Next: Cathie Wood Dumps $75M Of Coinbase Stock At Massive Loss After Long Being Bullish

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: CryptocurrencyNewsMarketsEthereumstakingThe Merge
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!