Coinbase Prime has added Ethereum as a staking option for U.S. domestic institutional clients, offering a new crypto on-ramp for institutions while allowing them to generate yield by staking their ETH.
The company noted in a blog post that clients can create a wallet,decide how much to stake and initiate staking from the ETH asset page on their Coinbase Prime account. Coinbase Prime also offers staking for other tokens, including Solana, Polkadot, Cosmos, Tezos, and Celo.
Coinbase added that withdrawal keys are held in its cold storage custody vault, which means “staked ETH and accumulated yield are always safe.” On Coinbase, staked ETH is represented through the ticker ETH2, which represents Ethereum after the transition to Proof-of-Stake.
The Ethereum Merge, which will move the network into Proof-of-Stake, describes the network’s current mainnet merging with the Beacon Chain’s PoS system, setting the stage for future scaling upgrades, including sharding, is expected to occur later this year.