Coinbase, the global cryptocurrency exchange platform, has announced that users in the UK will soon be able to earn staking rewards with ETH2, the upgraded version of Ethereum, with a waiting list for the product launched today ahead of its roll out in the near future.
Staking allows customers to earn up to 5%* APR per year by converting their ETH, the second most popular cryptocurrency, into ETH2 and staking their assets on Coinbase. Once converted into ETH2 their assets are added to the staking-pool which helps to secure the blockchain and generates rewards in return. Coinbase performs this staking on the customer’s behalf, bringing greater accessibility to one of the key features of the cryptoeconomy.
Coinbase first offered staking rewards in 2019 with Tezos and Cosmos, and the ETH2 staking rewards launch is a result of unprecedented demand from UK customers. There are no minimum amounts required to stake and customers can convert, stake and earn rewards on a portion of Ethereum rather than their entire balance.
Whilst customers can stake ETH outside of Coinbase, running a validator requires a stake of at least 32 ETH (approximately $100,000 as of 31 August) as well as the technical knowhow needed to run the ETH2 client software. Coinbase is making staking easier and more accessible by enabling users to participate without meeting these minimum requirements.
Commenting on the UK launch, General Manager of UK and EMEA, Marcus Hughes said:
“We have witnessed a huge rise in customers purchasing Ether in recent months and so are delighted to be in a position to offer them staking rewards for this asset. We believe that, in simplifying staking, which is very complex to do individually, we can play a role in widening access to this key part of the cryptoeconomy.
“In the current climate, a return of 5% is incredibly competitive and, given the success of our existing staking rewards programmes we expect ETH2 staking to be highly popular amongst our UK users.”