Coinbase Custody Unveil New Tezos (XTZ) Staking Service
Coinbase Custody, an independent crypto custodial service from the stables of Coinbase exchange, has announced that institutional investors on its platform can now stake their Tezos (XTZ) and earn passive income. The firm is also looking to launch MakerDAO governance support in Q2 of this year, according to a Medium blog post on March 29, 2019.
Coinbase Custody Launch Staking Service
Coinbase Custody, the crypto custodian that claims to have more than 60 institutional clients and over $600 million in assets under management, says that it is now offering users a “regulated, fully insured and 100 percent offline Tezos staking service.”
While proof-of-stake (PoS) blockchains make it possible for holders of its digital assets to earn passive income on their coins by “staking” or “delegating” their cryptos to a trusted party running a full node, the entire process also comes with own challenges.
Coinbase Custody plans to help its institutional clients eliminate these bottlenecks, thereby enabling them to make the most of their cryptoassets.
Coinbase Custody wrote:
“No other staking service provider has our track record of security and regulatory compliance, nor our robust, best-in-class insurance coverage,”
More Power to Investors
Kathleen Breitman, co-founder of Tezos reiterated that the new staking service will help institutional investors to play more active roles on the Tezos network.
In her words:
“The launch of Tezos staking on Coinbase Custody serves an important need that existed for a long time: a way for institutional investors who rely on a secure, offline custodian to take an active role in the network. To achieve a ‘digital commonwealth,’ we must facilitate participation for all, including the institutional customers that Coinbase Custody brings to the space.”
Explaining why it chose Tezos (XTZ) as its first staking asset over other PoS-based altcoins on the market, Coinbase Custody noted that Tezos’ delegated proof of stake (DPoS) algorithm, coupled with the massive demand from its current clients make XTZ the best choice for now.
The custodian has also stated that the DPoS architecture of Tezos (XTZ) makes it easier for the virtual currency to be stored in segregated offline wallets, “where they’re never subject to more risk than non-DPoS assets.”
MakerDAO Voting Coming Soon
In addition to its Tezos staking, Coinbase Custody says it plans to unveil MakerDAO (MKR) and Tezos voting in the coming weeks, to enable clients to participate actively in the governance of these decentralized communities.
“Coinbase Custody will provide an essential service by providing a platform for institutional investors to participate in the governance system and vote with their MKR assets,” stated Rune Christensen, Founder, and CEO of MakerDAO.