Cardano staking rewards go live on Coinbase exchange

abdelaziz Fathi

Coinbase has introduced a staking service for Cardano (ADA), which enables users to earn dividends or interest on their token holdings just for depositing and holding the token on the platform.

Coinbase

Coinbase explains that through its newest offering, eligible customers who deposit Cardano (ADA) can opt for the exchange to use the stored assets for staking. The process involves the users delegating their token holdings to those running the blockchain software in exchange for sharing some profit.

The decision was taken in the context of huge interest from retail investors who were open to the idea of earning interest on their crypto assets. The US major crypto venue is also no strange to staking rewards as it already offers the service for holders of Algorand, Cosmos, Ethereum and Tezos.

Meanwhile, Coinbase isn’t the only one platform doing staking as other large crypto exchanges also expand their staking-as-a-service offerings. Additionally, this couldn’t come at a more interesting time for Cardano, which has seen a listing spree as of late.

“While it has been possible for individuals to stake Cardano on their own, or via a delegated staking service, the process can be confusing and complicated. With today’s launch, Coinbase is offering an easy, secure way for any retail user to actively participate in the Cardano network and earn rewards,” the San Francisco exchange explains.

Return to count around ~4%

According to the official announcement, clients can now stake ADA tokens and earn a return on it each every 5–7 days once their initial holding period completes 20–25 days. Following the company’s fees deduction, Coinbase is expecting its staking’s annual return to count around ~3.75%. However, the exchange details that the proposed APR rate is based on the estimated protocol rate, which is subject to change. Customers will be able to see the latest applicable rates directly within their accounts.

Staking, the company explained, 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.

Touted as the ‘next big thing’ after Ethereum, Cardano (ADA) is a blockchain platform built on a proof-of-stake consensus protocol that validates transactions without high gas fees.

A stunning price rally has caused the token to explode from as low as $0.82 earlier this week to around $1.18 following the news of Coinbase offering rewards for that cryptocurrency. Cardano was enjoying a daily surge of 10 percent, with a total market cap of $38 billion and a 24-hour market volume of $3.3 billion, which is shown in the data by CoinMarketCap.

Read this next

Digital Assets

BlackRock digs further into crypto with metaverse ETF

BlackRock, the world’s largest asset manager with almost $10 trillion in AUM, is set to launch a new metaverse ETF to help investors securely monetize on the booming immersive version of the internet.

Digital Assets

Binance wins license in New Zealand as rival Huobi shutters derivatives

Binance, the world’s largest crypto exchange by traded volume, has obtained licenses to operate in New Zealand, even after rival Huobi shutdown derivatives trading last month due to concerns about regulations.

Retail FX

Hong Kong busts perpetrators of ‘ramp and dump’ scam

Hong Kong’s financial watchdog, the Securities and Futures Commission (SFC), has charged thirteen suspects of market manipulation in a joint operation with the local police.

Institutional FX

TradingView integrates market data from German Tradegate exchange

TradingView announced that it ‎has increased data coverage to allow its users to receive information from ‎and get free access to the intra-day and tick data from Tradegate Exchange.

Retail FX

Spotware Systems introduces Custom Push Notifications for cTrader mobile apps

Spotware Systems, a technology provider for the electronic trading industry, is introducing a new push notification feature to alert mobile users of price swings and market fluctuations through their cTrader app.

Market News

The Week Ahead: 30 September from David Madden, Market Analyst at Equiti Group

Sterling dominated the headlines last week, as there were concerns the UK government might struggle to service its debt.

Inside View

How does the quality of signal providers affect your business?

A must-have onboarding process for brokers with investment services like PAMM, MAM, or copy trading

Technology

DBS deploys Nasdaq Trade Surveillance

“The confidence that markets and our clients have in DBS as a safe and trusted banking group is anchored on our ability to detect and respond to anomalous activity, which in turn calls for a robust surveillance and prevention infrastructure.”

Industry News

SEC charges Justin Costello and David Ferraro for securities fraud and posing as billionaire veteran

The Securities and Exchange Commission charged Cannabis executive Justin Costello and David Ferraro, an associate of Costello’s, for promoting the stock of several microcap companies on social media without disclosing their own simultaneous stock sales as market prices rose.

<