Crypto.com launches on-chain staking for Ethereum, Solana, and Polkadot
Singapore-based cryptocurrency exchange Crypto.com has added support for on-chain staking, which allows clients in select markets to tap into rewards offered by certain types of cryptocurrencies running on proof-of-stake networks.
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. Users are rewarded for simply depositing and holding coins on Crypto.com App as they normally would.
Moreover, users have the flexibility to stake or unstake their assets without being subjected to a mandatory lockup period. Initially, the Ethereum (ETH), Solana (SOL), and Polkadot (DOT) blockchains will be available for staking within the Crypto.com platform, with plans to include more protocols in the future.
On-chain staking is a process specific to Proof-of-Stake blockchains that involves staking cryptocurrency directly on the blockchain itself. Conversely, off-chain staking, also known as lending, does not require staking your crypto directly on the blockchain.
The key difference between on-chain and off-chain staking is that on-chain staking supports the network and is rewarded, while off-chain staking is purely financially motivated and does not have any technical purpose for the blockchain. Both types of staking carry their own risks, with off-chain staking being the riskiest since it occurs outside the blockchain.
We last reported on Crypto.com in June when it announced plans to discontinue its institutional exchange service for professional customers in the United States.
The Singapore-based cryptocurrency exchange cited a decline in demand, likely influenced by the current market conditions in the US, including the ongoing legal actions against prominent exchanges such as Binance and Coinbase.
According to a statement from Crypto.com, the platform provided advance notice to its institutional users regarding the suspension of its institutional service. The exchange also stressed that its retail mobile application and platform will continue to operate as usual for users in the United States.
Furthermore, Crypto.com continues to offer cryptocurrency derivatives trading that is regulated by the CFTC. Additionally, retail users have been assured that the UpDown Options product remains accessible in the United States.
The crypto exchange stated that it might consider reopening its institutional trading platform in the future if there is a shift in market conditions. However, it refrained from divulging further details regarding the specific changes that would need to resume operations.
