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.
Coinbase has offered staking rewards since 2019, when it debuted the feature for Tezos. This was extended to Cosmos a year later.
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.

Why Proof-of-Stake Works Like a 'Pawn Shop': 5 Questions With Nansen's Nik Polk

10:14

Staking Is 'Definitely a Positive' for the Spot Ether ETF Narrative, Analyst Says

06:50

Tax Expert Breaks Down the Crypto Tax Basics for Beginners

13:53

German Finance Heavyweights Develop Fully-Insured Crypto Staking Offering

01:58

Seen at Consensus 2023: An Alpaca Steals the Spotlight

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Consensus

22

01

39

11

Coinbase to Bring Ethereum 2.0 Staking to UK Customers

Users will be able to earn up to a 5% annualized interest rate.

Why Proof-of-Stake Works Like a 'Pawn Shop': 5 Questions With Nansen's Nik Polk

10 Years of Decentralizing the Future

Why Proof-of-Stake Works Like a 'Pawn Shop': 5 Questions With Nansen's Nik Polk