Coinbase CFO says crypto staking for institutional investors could be a ‘phenomenon’ in the future

A senior executive at leading US-based crypto exchange, Coinbase, says staking for blue-chip investors is set to grow in popularity in the coming years.

in a new analyst callAlesia Haas, chief financial officer of Coinbase, said that the company recently offering crypto staking for institutions will be felt later rather than in the short term.

According to Haas, Coinbase has “onboarded institutional clients” by offering them a delegated staking service similar to what is available to retail clients.

“Previously, institutions could access staking through Coinbase Cloud and therefore they could have used our service to run their own node. But by offering it as a delegated staking service similar to what we have for retail clients, we just onboarded institutional clients.

Haas says this tactic will flourish once Coinbase begins offering large-scale institutions liquidity for assets they have already massively pooled, citing top altcoin Ethereum (ETH) as an example.

“What I would like to share with you is its early days. We see a lot of institutions holding Ethereum, for example, as a stackable asset. However, what I would like to say is that we have not yet deployed of truly liquid staking option for ETH2.

According to Haas, institutions may not want their assets to be held indefinitely, but Coinbase hopes to solve their problem.

“So when you stake on ETH2, you lock your assets into Ethereum until the merger and then some time after. For some institutions, this liquidity freeze does not suit them. And so, even though they may be interested in staking, they want to have staking on a liquid asset.

And that’s something we’re trying to solve for them. And I think once we have cash available for assets that institutions have pooled in higher proportions, that’s when we’ll see the real material impact of institutional income. So I think it’s further away, not a short-term phenomenon.

Don’t miss a beat – Subscribe to receive crypto email alerts straight to your inbox

Check Price Action

follow us on Twitter, Facebook and Telegram

Surf the Daily Hodl Mix

Check the latest news headlines

 

Disclaimer: Opinions expressed on The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and transactions are at your own risk and any loss you may incur is your responsibility. The Daily Hodl does not recommend the buying or selling of cryptocurrencies or digital assets, nor is The Daily Hodl an investment adviser. Please note that The Daily Hodl engages in affiliate marketing.

Featured Image: Shutterstock/Digital Store/oneshot1

Comments are closed.