Bitstamp launches its staking service for US customers
Bitstamp, one of the largest crypto platforms in Europe, is launching its staking service for retail and institutional customers in the Unites States.
Dubbed ‘Bitstamp Earn,’ the service enables users to earn dividends or interest on their digital assets for validating transactions and also allows them to vote on changes in the blockchain. Users are rewarded for simply depositing and holding coins on Bitstamp as they normally would.
At the moment, the Bitstamp platform allows for the staking of Ethereum and Algorand and pays rewards of up to 5% annually. This set of assets, according to Bitstamp, must be compliant with jurisdictional regulations and local laws, as well as strict technical, safety, and compliance reviews.
“Cryptocurrencies continue to gain mainstream adoption. Whether you’re new to crypto or have been active for years, we believe the opportunity to earn staking rewards is important. As a long-standing cryptocurrency exchange with a highly trusted reputation, we believe everyone should have access to crypto in an easy and secure way. With staking rewards, Bitstamp Earn provides a simple way to earn additional crypto,” the statement reads.
Other crypto exchanges already allow US users to stake their crypto holdings, including Coinbase which offers the service for institutional clients. While its staking service is still in its infancy, Bitstamp already allows its users to earn interest on their cryptocurrencies through providing loans to those interested in borrowing digital assets.
Bitstamp celebrates its eleventh year in operation, making it the longest-running crypto venue in a sector plagued by hacks and exit scams. The exchange is currently ranked 13rd in terms of total trade volume, according to the latest data provided by CoinMarketCap.
In 2016, Bitstamp received a publicity boost after it obtained a license to operate as a fully regulated payment institution (PI) in Luxembourg. At the time, Bitstamp touted the license as a factor that enables it to become the first fully licensed cryptocurrency exchange in Europe.
As per its blog relating to the announcement, Bitstamp said it is taking this step in order to fulfil its mission of supporting all its customers’ desired assets which meet the platform’s standards and also comply with their respective local laws.