As it gets closer The Merge and the community anticipates its advent, unsuspecting investors have started staking their ETH tokens, waiting for the rewards. coinbase has announced that institutional investors in the United States will now have the opportunity to join the bandwagon on its platform aimed at institutions.
US institutional clients can start staking ETH in their Coinbase Prime accounts
In a official announcement On August 1, the US exchange revealed that it would launch ETH staking in the US on its Coinbase Prime platform, the division designed explicitly for institutional investors. US institutions that so wish may earn interest by stake your tokens ETH.
“Customers can create a wallet, decide how much to stake, and initiate the stake from the ETH asset page in their Coinbase Prime account,” the blog post read. Coinbase further assured customers of the safety of their ETH staked and the returns earned, a disclosure that has recently become necessary considering recent events within the space.
According to Coinbase, the ETH tokens staked will have the symbol “ETH2” on the platform, as the values of the ETH and ETH2 tokens would be the same. After the impending Merger, all tokens will be identified by the original “ETH” ticker.
There are currently around 13.8 million ETH tokens staked
In addition to ETH, institutional investors using Coinbase Prime also have the opportunity to invest in a wide range of other crypto assets to generate returns, including Sunshine (SUN), Polkadot (DOT) Y Tezos (XTZ)among others.
Staking on a proof-of-stake chain is equivalent to mining on a proof-of-work chain: participants have the opportunity to participate in validating transactions on the PoS blockchain and earn returns for their efforts. This also helps protect the network.
Ethereum proponents have the opportunity to deposit 32 ETH into the staking pool to assume validator status as The Merge approaches. Although it is possible to stake less ETH, 32 ETH is the minimum required to activate the validation software itself.
At the time of writing, there are about 13,876,398 ETH tokens staked, which is 11% of the total ETH circulating supply of 121 million tokens. The total number of independent validators is 411,587. These values are expected to rise as the majority of institutional investors in cryptocurrencies are concentrated in the United States.