Coinbase, the cryptocurrency exchange, has announced that users in the United Kingdom and Germany will be able to stake Ethereum (ETH) and earn rewards.
Along with this new functionality, Coinbase has eliminated the necessity to maintain a balance of 32 ETH, which is now worth $121,028 at the time of writing, and the competence required to operate the ETH2 client software.
Coinbase’s improved Ethereum 2.0 (ETH2) network will be used for staking. As stated on their website, “[The] upgrade… intends to enhance the network’s security and scalability [and] entails Ethereum transitioning from their present mining model to one based on staking.”
According to Marcus Hughes, general manager of Coinbase Europe, the simplified approach would earn holders 5% interest on their staked tokens.
“In recent months, we’ve seen a significant increase in the number of clients acquiring Ether… We believe that by simplifying staking, which is extremely difficult to execute independently, we can contribute to broadening access to this critical component of the crypto economy.”
Rewards will be available to users in Germany. “Upon conversion [from ETH to ETH2], the coins are automatically added to Coinbase’s staking pool, which contributes to the blockchain’s security and generates incentives in exchange. Coinbase makes one of the most critical functions of the cryptosystem more accessible by staking on behalf of its customers.”
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