Coinbase to Bring Ethereum 2.0 Staking to UK Customers
Users will be able to earn up to a 5% annualized interest rate.
Updated Sep 3, 2021 at 7:37 a.m. UTC
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Coinbase ad in London's subway system. (Sheldon Reback/CoinDesk)
Coinbase, the Nasdaq-listed crypto exchange, plans to allow U.K. customers to earn staking rewards with Ethereum 2.0, the upgraded version of Ethereum that is expected to fully launch in the next few months.
- The company has opened a waiting list for customers, who will be able to earn up to a 5% annual rate by converting their ether holdings into ETH2 tokens, which can be used for staking, the exchange said Thursday.
- The tokens represent the right to withdraw staked ether once Ethereum 2.0 goes live.
- The 5% rate is based on the estimated Ethereum 2.0 network rate and will change as more ETH2 is staked.
- ETH2 tokens are being launched to U.K. customers as a result of “unprecedented demand,” according to Coinbase’s announcement.
- To run a validator for Ethereum 2.0 costs a stake of 32 ETH ($120,000). Companies like Coinbase are running validators and offering staking-as-a-service, thereby allowing clients to participate in the staking process and earn a share of the validators’ rewards without having to front the full amount.
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Jamie Crawley is a CoinDesk news reporter based in London.
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