Coinbase To Pay Interest to Institutional Investors on Staked Cryptocurrencies. Tezos (XTZ) is The First Crypto, MKR Will be Next
Coinbase is committed to becoming the best option to attract
institutional investors to the world of cryptocurrencies, presenting a broad
spectrum of possibilities ranging from trading to offering rewards to those
willing to learn about these technologies.
In a post published in the official blog of the famous american crypto exchange, the team explains that as of today they are starting a program to support staking of cryptocurrencies.
Tezos (XTZ) is The First Crypto Chosen By Coinbase for Its New Program
The first token to be accepted by this program is Tezos (XTZ). A PoS cryptocurrency that allows users to earn passive income by hodling their funds without spending them.
Kathleen Breitman, co-founder of Tezos explained that this
strategic decision could play a very positive role in engaging more
institutional investors. According to her, the fact of being supported by
Coinbase makes not only Tezos but the eco-system, in general, an especially
attractive investment option for previously skeptical traders and
“The launch of Tezos staking through Coinbase Custody serves an acute need that existed up until now: a way for institutional participants who rely on a secure, offline custodian to take an active role in the network, achieving our mission of creating a ‘digital commonwealth’ means facilitating participation for all, and that includes the institutional customers that Coinbase Custody brings to the space.
Coinbase offers its clients 100% offline segregated storage
via Coinbase Custody. Likewise, Coinbase’s relationship with insurance
companies provides clients with a sense of security in the face of a possible
(but highly unlikely) loss of funds due to an attack.
In fact, it is important to note that the exposure to attacks is similar to that of non DPoS cryptocurrencies such as Bitcoin. This implies such a strong level of difficulty that an abuse is not profitable for the perpetrators.
Coinbase Sets Its Eyes on Maker after Announcing XTZ Stake Support
Coinbase also hopes to add governance support for Maker (MKR) protocol soon. The information was confirmed by Rune Christensen, Founder and CEO of MakerDAO who was pleased and optimistic not only about the future of the exchange but also about the adoption of MKR thanks to decisions such as this one.
“Decentralized governance is fundamental to the success of the Maker project. Coinbase Custody will provide an essential service by providing a way for institutional holders to participate in the system and vote with their MKR.”