By Rhea Kaw, Product Manager
At Coinbase, we’re focused on offering more ways for customers to earn rewards by holding crypto. Following our recent launch of Tezos staking rewards for our US customers, we’re now rolling out this feature for Coinbase users in the UK and certain EU member countries*. Coinbase will stake Tezos on behalf of customers and distribute rewards directly to customer accounts. Since the US launch of staking rewards, customers have earned over $2 million in Tezos staking rewards.
With yields on savings accounts and government bonds at record lows — and in many cases negative — in the UK and across Europe, staking offers our customers a simple way to earn rewards on assets held in their Coinbase accounts.
Staking lets you earn rewards with your crypto by participating in the network of a particular asset. When you stake your crypto, you make the underlying blockchain of that asset more secure and more efficient. And in exchange, you get rewarded with more assets from the network.
With today’s launch, Coinbase is offering an easy, secure way for UK and certain EU customers to actively participate in the Tezos network. While it’s possible to stake Tezos on your own or via a delegated staking service, it can be confusing, complicated, and even risky with regard to the security of your staked Tezos. We’re changing that with staking rewards on Coinbase.
With Coinbase staking rewards:
- You can begin earning rewards on your crypto. The current estimated annual return for Tezos staking on Coinbase is ~5%. You’ll see your pending rewards increase in real-time in the app, and once your initial holding period completes (35–40 days), you’ll receive rewards in your account every 3 days.
- You will always maintain control. Your Tezos always stays in your account; you just earn rewards while keeping your crypto safely on Coinbase. You can opt out any time you want.
The return rate stated by Coinbase is a projection based on the rewards we’ve generated over the past 90 days. The Tezos network sets the underlying return rate depending on the number of staking participants. Coinbase distributes the rewards to customers and keeps a portion as commission. Also note, that like many cryptocurrencies, the price of the staked asset, in this case Tezos, is subject to market dynamics and will fluctuate in price as dictated by the market.
To get started, simply buy Tezos on Coinbase or send Tezos to your Coinbase account from an external wallet, and you’ll start earning rewards immediately.
*Staking is available to eligible Coinbase customers in the US, UK, France, Spain and The Netherlands
Coinbase launches staking rewards for customers in the UK, France, Spain and The Netherlands was originally published in The Coinbase Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.