Coinbase to enable ETH2 staking for UK users with 5% rewards | Finbold

Cryptocurrency exchange Coinbase has announced that its United Kingdom customers will soon be able to stake and earn from the upcoming Ethereum upgrade ETH2. 

In a press release, Coinbase indicated that a waiting list for the product is now live with a full launch expected soon. Under the program, U.K. investors will be able to stake any amount and earn rewards on a fraction of holdings instead of their entire balance.

“We have witnessed a huge rise in customers purchasing ether in recent months and so are delighted to be in a position to offer them staking rewards for this asset,” said Marcus Hughes, general manager for the U.K. and EMEA region.

To participate in the staking, investors will first need to convert their holdings to ETH2 and then add them to a staking pool.

Customers who opt to stake will earn up to 5% APR per year by converting their ETH. Notably, Coibase will manage the entire staking process as the company moves to make the product more accessible to its customers. 

According to Coinbase, running a validator independently requires a stake of at least 32 ETH alongside significant technical capability. 

The American-based exchange first offered staking in 2019 onboarding Tezos (XTZ) and Cosmos (ATOM). The Ethereum 2.0 venture follows increased demand for the product. 

The Ethereum 2.0 is the much-awaited Ethereum upgrade that shifts from the energy-intensive proof-of-work protocol. The protocol has resulted in a debate over its impact on the environment.

ETH2 staking value surpasses $20 billion

Ahead of the launch, ETH 2.0 has recorded increased attention from investors. Our previous report showed that in August, the value of staked ETH under the deposit contract of ETH 2.0 had hit $20.7 billion, with the number of the staked coins standing at a record high of 6.59 million.