One of the leading crypto exchanges, Coinbase’s integrated solution “Coinbase Prime” introduced Ethereum Staking to US domestic institutional clients.
Aaron Schnarch, Vice President of Product, Custody stated in a blog post, “We’re launching Ethereum staking to US domestic institutional clients on Coinbase Prime. Using our industry-leading cold storage, clients can now generate yield by staking ETH.”
Coinbase Prime provides an end-to-end staking experience to its clients. They can create a wallet and make decisions on how much they want to stake. Also, they can initiate staking from the ETH asset page from their Coinbase prime account.
In order to secure users’ staked ETH and yield, Coinbase Prime will lock withdrawal keys in their cold storage custody vault during the entire staking process.
Furthermore, the transactions will first go through a consensus, and only then and then it will be executed. The reason behind this is to provide an additional layer of security to client accounts.
Also Read: All About Ethereum Staking
Coinbase Prime also mentioned the most promising Ethereum upgrade, Ethereum Merge, which will change its consensus into proof-of-stake (PoS). After the Ethereum Merge, which is planned for September 2022, staking will become a part of its validation process that will help to secure the network.
Staking on Ethereum will allow stakers to earn passive income on their ETH while “providing useful work in the form of security to the underlying blockchain.”
Coinbase Prime already supported the staking for other assets from different blockchains such as Solana, Polkadot, Cosmos, Tezos, Celo, and more.