Coinbase, the largest US-based cryptocurrency exchange, has recently announced the incorporation of Cardano (ADA) into its staking offering. The new development will allow users to earn a yield on their ADA holdings on the crypto exchange, via their participation in the network’s proof-of-stake (PoS) mechanism.
According to Rupmalini Sahu, Coinbase’s Senior Product Manager, who published the announcement, the new addition is part of the plan of the crypto exchange to scale its staking portfolio throughout the year.
More @Cardano. More staking.
We have officially expanded staking offerings to include $ADA so you can begin earning rewards on your crypto!
Read more here → https://t.co/DgGBE2Kn0w
See $ADA info here → https://t.co/wy54lLRcQU pic.twitter.com/6T6ZF9FPkq— Coinbase Assets (@CoinbaseAssets) March 23, 2022
In the announcement, Sahu noted that Cardano (ADA) “aims to enable smart contracts to allow developers to build a wide range of decentralized finance (DeFi) apps, new crypto tokens, games, and more.”
According to Sahu, when users stake cryptocurrencies, such as ADA, they make the underlying blockchain of the particular asset more secure and more efficient. Users get rewarded in return with additional assets from the network, which are paid out as rewards.
The announcement also says, “While it has been possible for individuals to stake Cardano on their own, or via a delegated staking service, the process can be confusing and complicated. With today’s launch, Coinbase is offering an easy, secure way for any retail user to actively participate in the Cardano network and earn rewards.”
Read Also: Cardano Stake Pools Record $1.4 Billion in ADA Inflows in Just 12 Hours
With Coinbase staking, users:
- Can begin earning rewards on their crypto assets. The current estimated annual return for Cardano staking on Coinbase is ~3.75% APY. Once their initial holding period completes (20–25 days), they will receive rewards in their accounts every 5–7 days.
- Will always maintain control. Their ADA holdings always stay in their accounts; they just earn rewards while keeping their crypto safely on Coinbase. They can opt-out any time they want.
According to Coinbase on its staking page, users can earn ADA on the trading platform as long as they hold at least $1 worth of the digital currency in their accounts.
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