Coinbase Custody, the independently-capitalized business to Coinbase, Inc. announces recently that it is adding staking of Proof of Stake (PoS) cryptocurrencies feature. According to the reports Coinbase Custody is the most trustworthy medium for staking the cryptocurrencies even though there are many cryptocurrencies which follow Proof of Stake (PoS) algorithm.
The exchange announced the support for Tezos (XTZ) cryptocurrency in the Coinbase Custody. Coinbase Custody operates as a standalone independent custodian for cryptocurrency assets. The platform which stores cryptocurrencies with high security and privacy on the behalf of the users.
Coinbase Custody provides a secure platform for storing cryptocurrencies and also enables staking or baking of the cryptocurrency. The process of reaching proof of stake [PoS] platform by the distributed consensus is called staking. The first cryptocurrency chosen by the custody is Tezos [XTZ] which also enables offline staking. The firm is expecting that the institutional investors will take active participation in the process.
The price of Tezos gained 100% since the beginning of the year when its price was $0.499. On March 30th token reached $1 valuation for the first time this year. The stakes are returned to Tezos and the annual return on staking Tesoz is around 7%. Moreover, the stakes are returned in Tezos itself.
The price of Tezos is increasing on the buying pressure from institutional investors seeking to stake the cryptocurrency for its annual returns. Tezos (XTZ) is the first cryptocurrency to be added to the Coinbase Custody staking. It plans to add support for other PoS crypto projects on its platform.
Coinbase custody provides a secure platform for implementation since staking involves parking a notable value in a cryptocurrency wallet. The custody also highlighted that the continual rise in investment would adversely affect the price of the cryptocurrency in the long run.
It also reminds of the ‘Coinbase listing effect’ which was in effect in the cryptocurrency markets in 2017 and 2018. If a coin is listed on coinbase.com would affect positively from increased investor trust and a significant increase in volume.