HomeCryptoCoinbase and Ethereum staking for institutional clients

Coinbase and Ethereum staking for institutional clients

Recently the world’s leading cryptocurrency exchange, Coinbase, has given institutional investors the opportunity of staking Ethereum on its platform.

Ethereum staking arrives on Coinbase

Speaking of institutions, there is bad blood between Coinbase and these, or at least it can be said that both look at each other with suspicion for various reasons. 

One of the problems is definitely the amount of supply in terms of the quantity of tokens, NFTs and whatnot that can be exchanged on the platform, which imposes a huge amount of work on the SEC when it comes to oversight. The other main problem (but they are not the only ones) is the fact that the crypto asset is still in some ways uncharted terrain.

Laws and rules that are still too fuzzy mean that the terrain is still too slippery and that intercurrent problems such as the one with LUNA are just around the corner. 

Regarding the very issue of supervision, it was last week that the SEC undertook an investigation of Coinbase in order to determine whether there might be any security among the various exchangeable tokens. 

The dispute stems from the fact that in order to be exchanged, securities in the states must be previously registered and authorized with the SEC, and since the exchange does not appear to be trading any, this has aroused suspicion and the start of the investigation on XRP in particular. 

At the moment there is no evidence to the detriment of Coinbase, which in the meantime has thoughtfully extended a hand as a sign of peace. 

Jokes aside, institutional investors are those individuals who invest (in this case in cryptocurrencies) third-party capital.

The platform has announced that it will be possible to take advantage of end-to-end staking on its platform and that the service will currently be offered to all those institutional-type clients with a 5% return.

How the staking service will be offered

Staking, or an annuity on ETH held in the portfolio, will also be possible for other digital currencies such as Solana, Polkadot, Cosmos, Tezos, Celo, etc. 

The upgrade will cover both ETH and ETH2, its upgraded counterpart, which it should be specified is not another token, but just an “upgraded” ETH. 

As a result of the Merge scheduled for September this year ETH and ETH2 will merge and only ETH will remain, which will see implementations that will make it more secure. 

Ethereum will move from being based on a Proof of Work model to the Proof of Stake one, which is based on staking and is safer and greener

George Michael Belardinelli
George Michael Belardinelli
A former corporate manager at Carifac Spa and later at Veneto Banca Scpa, blogger and Rhumière, over the years he has become passionate about philosophy and the opportunities that innovation and the media make available to us, in particular the metaverse and augmented reality