Gemini Launches Crypto Staking Service in USA, Singapore, Hong Kong
Gemini, a major cryptocurrency exchange headquartered in New York, announced Thursday that it launched a staking program called “Gemini Staking,” which allows customers to lock up their assets in their accounts and earn rewards or interest.
The program enables investors to seamlessly stake any crypto amount without fees and receive stake rewards in their Gemini account.
Gemini said customers can begin staking MATIC on the Polygon network, with plans to support Ethereum (ETH), Solana (SOL), Polkadot (DOT) and Audio (LYD) will take place next month after the merge goes live.
Layla Amjadi, vice president of product at Gemini, said customer interest spurred by the merger was key to the company’s move to launch its betting services.
Amjadi stated: “It’s now clearer than ever that people are interested in betting, especially now that we’re heading towards the Ethereum merger. With Ethereum as a staking option for those on Gemini immediately and after the merger, and with more liquidity and higher returns, staking is becoming more and more attractive to people.”
In a statement, Gemini explained: “Staking is central to Proof-of-Stake consensus mechanisms, where users pledge crypto to securely validate transactions on a blockchain network. Once validated, users who have staked receive their crypto tokens as a reward.”
Gemini said the betting service is available to users across the US (except New York, where local laws prohibit staking), Singapore and Hong Kong.
The firm said the staking program protects customers’ assets that have been staked by reimbursing them for penalties imposed by malicious validators on their staked tokens. Gemini will cover any expenses associated with the wagering and withdrawal processes.
Earn interest in Crypto on The Rise
Gemini said staking is the second return-generating product it has launched after Gemini Earn. In February last year, the exchange launched “Gemini Earn”, an interest-earning program that enables customers to earn up to 7.4% annual percentage return (APY) on cryptocurrencies.
Although both Staking and Earn allow clients to earn a return on their crypto, there are important differences in how such returns are generated.
Gemini’s staking launch comes as other crypto firms establish their offerings to create opportunities for retail and institutional clients to collect staking rewards.
Early this month, Coinbase introduced an Ethereum staking service aimed at institutional customers in the US.
In June, Binance.US launched its staking service to surpass other exchanges in the US such as Gemini, Kraken, BlockFi and Coin base.
Binance.US’s staking program promises returns of up to 18% annual return (APY) and allows users to lock in digital assets to support Proof-of-Stake (PoS) blockchains, which include Livepeer (LPT), Graph (GRT) ), Solana (SOL), Cosmos (ATOM), Audius (AUDIO), BNB Chain (BNB) and Avalanche (AVAX).
In June, Bitstamp launched a stake offer for its US retail and institutional clients, as investors search for alternatives amid low yields and inflation.
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