On the 1st of August, Coinbase announced on its blog and Twitter handles that the prime version now supports Ether staking for institutions. The new development will be implemented in the United States alone, with plans to expand across other nations.
Institutions will now be able to safely store their Ethereum tokens in Coinbase’s cold storage while generating yields simultaneously. The platform will offer a 5% APR for ETH, while other tokens like SOL, DOT, and ATOM have varying annual yields.
Ethereum’s Merge is on the Way
Coinbase’s recent addition of staking rewards for Ethereum came in just before the highly anticipated merge. Institutional stakers will have access to ETH and ETH2 in the staking pools, and both will have identical values. When the merge is complete in the coming month, staking pools will have just ETH without ETH2.
The transition of the Ethereum network from proof-of-work to proof-of-stake will open more opportunities for stakers in the crypto ecosystem. According to Ethereum.org, staking rewards for Ether will soar by up to 50% after the merge. Thus, Ether holders and community members look forward to a more efficient blockchain network.
Also, institutions will look forward to participating in the Coinbase prime staking pool. Coinbase has guaranteed investors the security of funds and appetizing yields.
Stakers may also decide to compound their yields, which will be distributed in ETH. The proof-of-stake consensus mechanism has a unique way of ensuring active participation from pool members. Bad actors or validators that experience a downtime are penalized while reputable stakers are rewarded.
In addition to the staking reward benefits the merge will provide, the merge will likely strengthen Ethereum’s security. Even though several blockchain experts believe the opposite, Vitalik Buterin is convinced that the transition to proof-of-stake will make the network less susceptible to a 51% attack.
