Coinbase, a leading U.S.-based crypto exchange now lets Tezos (XTZ) holders stake their tokens right from their Coinbase wallet and earn rewards. The exchange has also introduced the Coinbase Earn Tezos campaign, which enables anyone in a Coinbase-supported jurisdiction to earn up to $6 worth of XTZ by performing simple tasks, according to a blog post on November 6, 2019.
Tezos (XTZ) Staking
Building upon the success of the Tezos (XTZ) staking service introduced by Coinbase Custody earlier in March 2019, Coinbase exchange has now rolled out Tezos staking for all U.S. residents on its platform.
As stated in its blog post, Coinbase now stakes Tezos (XTZ) on behalf of its U.S. customers and all staking rewards are automatically sent to users’ wallets
For those who are unaware, staking enables holders of proof-of-stake (PoS) based altcoins to participate in securing the network and earn rewards in return, just the same way Bitcoin miners get rewarded with BTC for their mining efforts. However, in staking, participants are not required to purchase a piece of mining equipment.
Though it is possible for XTZ hodlers to stake their coins via a delegated staking platform of their choice that supports Tezos, Coinbase claims its new service simplifies the entire staking process for customers whilst also adding extra security.
“While it’s possible to stake Tezos on your own or via a delegated staking service, it can be confusing, complicated, and even risky with regard to the security of your staked Tezos tokens. We’re changing that with staking rewards on Coinbase.”
Tezos Stakers to Earn Five Percent Interest Annually
Coinbase offers Tezos stakers a five percent interest on their coins per year and users will start receiving their rewards in their Coinbase account every three days, after the initial 35-40 days holding period.
The exchange says users will remain in control of the Tezos tokens stored on their Coinbase account throughout the duration of the staking contract, as the tokens will always stay in their wallets and they are free to opt-out of the program at any time.
What’s more, Coinbase has also launched the Coinbase Earn Tezos campaign, to allow customers in all Coinbase supported countries to easily earn up to $6 in XTZ and enjoy the staking service.
To earn Tezos on Coinbase, eligible users are required to learn about the digital asset and take a few quizzes on the platform.
In related news, Binance crypto exchange announced in September 2019, that it’s looking to introduce its staking service for a vast array of altcoins, including NEO (NEO) and Stellar Lumens (XLM).