Coinbase Custody, division of the cryptocurrency exchange Coinbase dedicated to the custody of institutional capitals, announced on launch of the staking for Tezos (XTZ).
"We are proud to be the first full-service, regulated, fully insured e-mail service provider and 100% in cryptography.
In the coming weeks, we will add governance support for the Protocol Maker (MKR)", underlines Coinbase on his blog.
Lo staking it is the method by which networks based on Proof-of-Stake (PoS) systems encourage user activity.
Coinbase Custody was launched to allow institutions to have a safe and reliable partner capable of safekeeping and risk-free assets.
"This approach has helped us scale over 60 customers and $ 600 million worth of assets in custody. Today we are taking the next step of our journey: from helping our customers to preserve their digital resources in a totally secure and accessible way to cryptographic networks".
Coinbase Custody offers a passive income
In addition to offering a cryptocurrency custody service intended primarily for institutional investors, Coinbase Custody also offers a passive income thanks to the Proof of Stake (PoS).
Proof of Stake ("POS") resources encourage participants to protect the blockchain by "targeting" or "delegating" custody of funds to someone running the blockchain software.
If you delegate to a node Trusted (also known as a validator), you can share the benefits that the validator receives for blocks of data mining.
Anyone who holds the blockchain token can participate in this process and have the opportunity to earn passive income on crypto assets.
Most of Coinbase Custody's clients are fund managers who act as trustees for their investors.
Participating in POS networks has raised an interesting tension: to bet or not to bet? The blockade avoids deflation, but products to date increase the risk.
"The launch of Tezos through Coinbase Custody responds to an acute need that existed to date: a way for institutional participants who rely on a secure and offline Exchange to take an active role in the network", commented Kathleen Breitman, co-founder of Tezos.
"Achieving our mission to create a 'digital commonwealth' means allowing everyone to access and participate, even the institutional customers to whom Coinbase Custody addresses".
How network participation and governance will work
After months and months spent reflecting on the best way to offer services staking need governance to customers, Coinbase Custody has decided to choose Tezos for its DPOS architecture and for the growing demand of current customers.
The assets of Coinbase Custody customers are always protected by insurance policies taken out by some of the largest insurance companies worldwide.
