Coinbase Custody, the cryptocurrency custody arm of US-based exchange, Coinbase, said in a March 29 announcement that they have introduced staking for Tezos (XTZ) tokens on their platform which primarily serves institutional clients.
The new offering means that investors who deposit Tezos (XTZ) can opt for Coinbase to use the stored assets for staking — a process by which a crypto holder delegates his assets to another user on the network who is running the blockchain software in exchange for passing income or profit.
By launching the new staking service, Coinbase Custody which keeps assets in cold storage claimed that it had become the first fully regulated and comprehensively insured exchange to expose clients to the income model.
Sharing her thoughts on the new development, 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.”
Coinbase Custody revealed in the later part of the report that it could add a staking function for MakerDAO governance token Maker (MKR) sometime in Q2 2019.
Bullish Tezos (XTZ) Spikes 18%+
The introduction of Texas (XTZ) staking on Coinbase Custody seem to be a move that has gone down well with the crypto community.
Following the announcement, the now-stakable token, XTZ, witnessed an over 18% increase that could easily be attributed to institutional investors onboarding the new offering.
Within the last 24 hours leading up to press time, the value of XTZ has roughly moved from $0.72 per token to around $0.87 at the time of writing.
Meanwhile, we reported prior to the steep crypto market decline in November that Kathleen Breitman, co-founder of Tezos said the industry should focus on getting long-term results, instead of checking coin prices daily.