Crypto exchange Gemini has announced support for staking, allowing its users throughout the US, Singapore, and Hong Kong to earn rewards on eligible crypto assets. Prior to the Gemini Staking product launch, users would have to natively go on-chain to stake their tokens and earn rewards for validating various blockchain networks. Gemini will support Polygon initially, with plans to support Ethereum, Solana, Polkadot, and Audius in the future. Gemini's announcement comes as other crypto firms expand their staking offerings ahead of the Ethereum blockchain's much-anticipated Merge.
Gemini stated in their announcement that users who stake with its service will benefit from reduced technical requirements. Gemini will cover infrastructure costs, gas fees, and slashing penalties. It also offers an institutional approach to security rather than having users manage their own keys.
It is not clear whether Gemini plans to run its own validator nodes or whether it will work with external validators.
Franck Kengne, Product Manager at Gemini announcing the new feature said, "The launch of Gemini Staking underscores our continued commitment to offering a full suite of innovative options for our customers to put their crypto assets to work. We continue to seek out new ways to help our customers grow their crypto portfolios and tailor them to their risk appetite — staking is an important next step in that evolution."
This announcement arrives three weeks after Coinbase announced on August 1 it would be expanding its Coinbase Prime — a product geared toward institutional investing — staking offerings to support Ethereum post-proof-of-stake merge. That said, Coinbase did recently state that it would prefer to discontinue its staking service in the unlikely event that it is compelled to censor Ethereum.
Other crypto exchanges including Binance, Kraken, FTX, Kucoin, and, Crypto.com, have also introduced staking services in recent months and years.
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