Coinbase Custody clients is the first full-service, regulated, comprehensively-insured, and 100% offline staking provider in crypto. In a few weeks, they will add governance support for the Maker (MKR) protocol.
Crypto-native Passive Income From Offline Assets
Proof-of-Stake (“POS”) assets incentivize participants to help secure the blockchain by “staking”, or “delegating”, their assets to someone running the blockchain software. If you delegate to a trusted node (also known as a validator), you can share in the rewards that the validator receives for mining blocks. Anyone holding the blockchain’s token can participate in this process, making POS networks one of the first crypto-native ways to earn passive income on crypto assets.
Most Coinbase Custody clients are fund managers who act as fiduciaries to their investors.
Staking avoids deflation, but products to date increased risk. Prior to today, the risk necessary to actively participate in staking has mostly outweighed the return. As a result, many institutional investors have elected to sit on the sidelines.
Coinbase Custody removes the downside. They have a track record of security and regulatory compliance and have insurance coverage.
The recent successes of Tezos and Cosmos is the start of a more open and engaging era in crypto: one where all participants can actively help secure blockchains and influence their development
