Coinbase Custody has launched staking services for Cosmos (ATOM)
Coinbase Custody clients now have the ability to use their Cosmos (ATOM) assets to earn rewards through staking without having to put their funds at risk. Clients will be able to choose how much they would like to stake and whether to delegate to Coinbase Custody or a third-party validator. The rates of return and fees are currently unknown.
Coinbase Custody currently offers staking for Tezos ($XTZ) and Algorand ($ALGO) tokens and remains the largest operator of a Tezos staking validator, despite charging the highest fees at 25%.
Cosmos is a Proof-of-Stake (PoS) blockchain designed to improve the interoperability between other blockchains. PoS assets, like Cosmos, incentivize participants to help secure the network by “staking” their assets to a validator who runs open source blockchain software in exchange for sharing in the rewards for mining blocks.
Currently, most Cosmos staking services on the market require some level of hot storage to operate. Similar to our Tezos staking services, we have worked to ensure our Cosmos staking service leverages our existing offline storage systems. In doing so, we are able to offer clients the ability to stake their ATOMs without compromising on asset security, according to Coinbase’s blog.
Several exchanges have recently ventured into staking, including Binance.US and Bitfinex. The former supports all three tokens that Coinbase now supports – Tezos, Cosmos and Algorand, while the latter currently supports Cosmos, EOS, and V.Systems.
Binance, on the other hand, currently supports over 15 coins, including Tezos, Cosmos, Algorand, and EOS.