San Francisco-based cryptocurrency trading platform Kraken is primed to launch token-staking reward services starting with Tezos (XTZ), reports Decrypt, December 12, 2019.
Kraken Offering 6% Return on Staking Tezos
One of the largest cryptocurrency exchanges by reported trading volume, Kraken recently announced the launch of its cryptocurrency staking services. Per sources close to the matter, from December 13, Kraken users will be able to earn a 6% return for staking XTZ.
For the uninitiated, staking allows users to earn small passive income generated on the number of digital tokens they stake for block confirmations on the blockchain network. Kraken stated that its mission is to make crypto-staking services more accessible to the masses. Per the arrangement, Kraken will earn a fixed percentage of block validation rewards generated by the number of tokens staked by traders.
Staking presents one of the most heralded use-cases of cryptocurrencies running on the proof-of-stake (PoS) protocol. By allowing traders to stake tokens on its platform, XTZ holders will now be able to capitalize on the altcoin’s PoS protocol.
Through staking, Tezos node operators will get compensated with XTZ tokens for validating transactions on the blockchain. Notably, Kraken’s staking service involves no lockup periods and payouts will be scheduled for Monday and Thursday.
To be able to stake Tezos, traders will first need to deposit XTZ tokens in the Kraken Spot Wallet. Kraken stated that it will take full responsibility to protect the Spot Wallet from security threats. Traders can exit their staking positions by transferring their holdings from Staking back to the Spot Wallet.
Crypto Staking Space Becoming Increasingly Competitive
Evidently, Tezos has emerged as a favorite of crypto exchanges when it comes to offering staking services. As reported on November 7, 2019, rival cryptocurrency trading platform Coinbase had announced the launch of its staking services for U.S. traders, also with Tezos.
Similarly, Maltese cryptocurrency exchange Binance on September 27, 2019, stated that it is planning to launch staking services for a suite of digital currencies. Given the recent chain of events, one can expect the crypto staking space to become more congested with time.
At press time, XTZ trades at $1.54 – up by 1.86% percent in the 24-hour trading period with a market cap of slightly above $1 billion.