- Coinbase has decided to add ethereum for institutional clients based in the US.
- The product will support financial institutions that are interested in crypto but lack the needed knowledge.
- For security of client accounts, staking transactions are mandated to accomplish consensus.
More here: https://t.co/Ew8pyckv1r— Coinbase Institutional (@CoinbaseInsto) August 1, 2022
The product will provide one more crypto on-ramp for institutions that track the exponential growth of the industry but lack the knowledge to enter into it.
Staking allows extra earning on assets that are in the custody upon offering relevant work to the blockchain. Stakers with good performance are rewarded; however, under performers face the consequences. Staked tokens are stored in the wallet.
Coinbase Prime provides staking for tokens that includes Tezos, Solana, Polkadot, Celo and Cosmos.
From creating a wallet to deciding how much to stake and finally starting the staking process from the ETH asset page, clients can do everything on their Coinbase Prime account, according to Vice President of product custody at Coinbase, Aaron Schnarch.
In the cold storage custody vault of Coinbase are held the withdrawal keys. As far as staking transactions are concerned, they must complete consensus prior to execution.