U.S.-based crypto exchange Coinbase Global Inc COIN is expanding its Ethereum ETH/USD staking offering for domestic institutional clients.
What Happened: In a blog post on Monday, Coinbase said that institutions can enjoy an end-to-end staking experience on Coinbase Prime.
Staking provides a way for institutions to earn passive income on their ETH holdings by accumulating yield on staked funds. Clients can initiate staking directly from their Coinbase Prime accounts after creating a wallet and determining the quantity of ETH to be put up for staking.
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As ETH transitions to Proof-of-Stake, validators staking ETH will effectively take over the role of miners in running the network. As such, staking will play a much more important role in Ethereum’s future and rewards from the process could considerably increase.
Earlier this year, Coinbase said it expects ETH staking yields to rise ahead of 9%-12% APR post the Merge. At press time, yield offered on staking pools had an average reward of 4.08%, as per data from StakingRewards.
Currently, Ethereum staking has a total market cap of $21.5 billion. In a report last year, JPMorgan Chase & Co. estimated that the post-Merge Ethereum 2.0 could create a $40 billion staking industry by the year 2025.
Price Action: According to data from Benzinga Pro, ETH was trading at $1,605, down 5.33% over 24 hours.
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Image and article originally from www.benzinga.com. Read the original article here.