The custodial division of the cryptocurrency company Coinbase announced the launch of a service that allows them to receive income from cryptocurrency based on the Proof-of-Stake algorithm, CoinDesk reports.
The service is focused on institutional investors. The first supported PoS project will be Tezos. According to Coinbase, the annual yield of tokens of the latter will be about 6.6% (minus the company's commissions in the range of 20-25%).
Representatives of Coinbase Custody argue that all customer funds will be kept in the insured cold storage. In the second quarter of this year, Coinbase will provide Tezos holders with access to voting.
As it is known, in the mechanism of Proof-of-Work the miners play a key role, performing calculations using energy-intensive specialized equipment. The Proof-of-Stake consensus algorithm implies depositing funds by network participants as a resource that determines which node receives the right to mine the next block.
Holders of PoS-coins, who do not want to take an active part in the network, can delegate their assets to other participants. The profitability of stacking can vary depending on the characteristics of a particular network, as well as depend on the level of participation. Most often it is in the range of 5-25% per annum.
The news had a positive effect on the Tezos (XTZ) cryptocurrency rate – only in the last 24 hours the growth of the coin exceeded 16%:
Data: CoinMarketCap
Recall that Coinbase Custody began accepting funds from institutional investors from the US and the EU last summer. After some time, representatives of the service reported that they were considering the possibility of supporting almost 40 new assets .
Also earlier, BlockchainJournal reported that Coinbase services became available to institutional investors from Asian countries.
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