Cryptocurrency trading platform Coinbase has announced that customers in the UK and Germany will be able to stake Ethereum (ETH) and earn rewards.
In addition to this new feature, Coinbase has removed the requirement to hold a balance of 32 ETH, valued at $121,028 at time of writing, and the expertise needed to operate the ETH2 client software.
Staking will be handled via Coinbase’s upgraded Ethereum 2.0 (ETH2) network. According to their website,
“[The] upgrade… aims to improve the network’s security and scalability [and] involves Ethereum shifting their current mining model to a staking model.”
Coinbase European general manager Marcus Hughes says the simplified process will offer holders 5% interest on their staked tokens.
“We have witnessed a huge rise in customers purchasing Ether in recent months… 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 crypto economy.”
Users in Germany will be able to earn rewards.
“After being converted [from ETH] to ETH2, the coins are automatically added to Coinbase’s staking pool, which helps secure the blockchain and generates rewards in return. Coinbase stakes on behalf of its customers, making one of the most important functions of the crypto economy more accessible.”