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Coinbase introduces staking service for Ethereum 2.0

Coinbase – the largest cryptocurrency exchange in the US – has announced the waitlist for Ethereum 2.0 staking. This will allow the Ethereum holders to earn Ethereum without needing to run a validator node.

According to the report by CoinDesk, Coinbase users can sign up for the waitlist. Currently available for the citizens in the US, this will allow them to stake their ETH into the Beacon Chain smart contract, which acts as a coordinator and bridge between Ethereum and Ethereum 2.0. The best part about this is that users don’t need to have 32 ETH which is required for running a node, and they can stake any amount of ETH.

Users can earn up to 7.5% APR (Annual Percentage Rate) for staking their Ethereum. The rate depends on the Ethereum network’s variable rate of return. However, Coinbase will take the commission as well for offering this service which is 25% of the rewards earned by the user.

Of course, Coinbase isn’t the only option for staking Ethereum. Cryptocurrency exchange Kraken also offers this capability. Popular wallet MyEtherWallet also supports in-app Eth 2.0 staking.

Worth noting that the staking is possible because of Ethereum 2.0, which went live in December. Users can deposit their old ETH into the Ethereum 2.0 deposit contract which will convert it into ETH2 / Beacon Chain ETH. However, a word of caution: once you’ve staked your Ethereum into the network, you won’t be able to sell or send them to anyone. Coinbase has told CoinDesk that it’s exploring options that will allow such capability to the users.

Along with staking Ethereum, Coinbase users can also stake Algoraland, Cosmos, Tezos, and more. Each of these offers APY (Annual Percentage Yield) of up to 6%.

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