Sam McIngvale announced on Medium that Coinbase Custody has launched support for Tezos (XTZ), while in the coming weeks will also launch support for Maker (MKR).
Coinbase Custody is a cryptocurrency custody service designed primarily for institutional investors who need a regulated and trusted partner to store their crypto assets. It currently has over 60 clients and $600 million worth of assets in custody.
But this time there’s more. In fact, a passive income is also offered thanks to Proof of Stake (PoS). Tezos, for example, encourages token owners to delegate the custody of their funds to those who run the blockchain software.
If you delegate to a validator node you can share the benefits the validator receives from mining blocks. Therefore, anyone holding XTZ tokens can participate in this process and earn passively.
Coinbase Custody is expected to ensure high levels of security and regulatory compliance and also includes comprehensive insurance coverage.
After deducting the Coinbase fee, investors can expect an annual return of about 6.6%, explains the press release.
Tezos was chosen as the first cryptocurrency of its kind to be integrated into the service due to its DPoS architecture and high demand from current customers. This allows Coinbase to store customer resources in cold storage while ensuring a passive income.
In addition, the deposit, withdrawal and accounting functions are identical to those of any other cryptocurrency supported by the service.
Kathleen Breitman, co-founder of Tezos, said:
“The launch of Tezos staking through Coinbase Custody serves an acute need that existed up until now: a way for institutional participants who rely on a secure, offline custodian to take an active role in the network. Achieving our mission of creating a ‘digital commonwealth’ means facilitating participation for all, and that includes the institutional customers that Coinbase Custody brings to the space”.
