Nasdaq-listed cryptocurrency exchange Coinbase (NASDAQ: COIN) has added Cardano ($ADA) to its staking offering, allowing users to earn a yield on their ADA holdings on the exchange by participating in the network’s Proof-of-Stake mechanism.
According to an announcement published by Coinbase’s Senior Product Manager Rupmalini Sahu, the rollout is part of Coinbase’s plans to scale its staking portfolio throughout the year. In the announcement, Sahu noted Cardano “aims to enable smart contracts to allow developers to build a wide range of decentralized finance (DeFi) apps, new crypto tokens, games, and more.”
When users stake cryptoassets like ADA; it adds, they’re making the underlying blockchain more secure and efficient and in exchange are rewarded with assets from that network. Coinbase noted that while individuals can stake their ADA on their own or via a service, the “process can be confusing and complicated.”
The launch sees Coinbase make the process “easy” and “secure.”
Coinbase’s announcement adds that the current staking APY on Coinbase is around 3.75%, and that users will receive rewards every 5 to 7 days after an initial holding period of 20 to 25 days. The underlying return rate, it adds, is set by the Cardano network, with Coinbase taking a commission off of it.
On its staking page, Coinbase details users can earn ADA on the platform as long as they have at least $1 worth of the cryptocurrency on their accounts. Other cryptocurrencies that can be staked on Coinbase include $XTZ, $ETH, $ATOM, and $ALGO.
Market observers may have predicted Coinbase’s move, as a total of 23 staking pools staked about 1.5 billion ADA in only 12 hours earlier this week. Metadata associated with the pools linked them to Coinbase subsidiary Bison Trails, as CryptoGlobe reported.
Coinbase’s move as the transaction volume seen on the Cardano network explodes and the total value locked on its decentralized finance (DeFi) applications keeps on growing.
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