Crypto Staking Launched by Binance US Might Pose a Threat to Its Rivals

Vignesh Karunanidhi
Crypto Staking Launched by Binance Us Might Pose a Threat to Its Rivals
Source: Crypto News

Binance US, the American wing of the global crypto exchange, has now deployed cryptocurrency staking services. The services will be widely available to its users across the United States.

Binance US is now offering cryptocurrency staking services to its customers that hold any of the seven cryptocurrencies based on the proof-of-work consensus. The cryptocurrencies include Binance coin, Avalanche, Solana, The Graph, Cosmos, Livepeer, and Audius.

Binance US’s official Twitter account also tweeted that more is to come.

Binance US’s move will compete with its rivals

Many blockchain networks employ proof of stake as a consensus method, which requires users to lock up their currency for authorization to validate the next block. When these people validate a block, they usually get a payment based on the transaction fees they received.

For a better possibility of successful validation of the block, more coins need to be locked up. In the case of Ethereum 2.0, users need to stake a minimum of 32 ETH. That is where cryptocurrency exchanges come to the rescue with their staking services, where they simplify the whole process.

“We wanted to put out a product that would unquestionably be the best staking platform in the United States by the end of the year.” “So, for comparison purposes, we’re looking at the Coinbases, the Geminis, Krakens, and BlockFis of this world, both in terms of more competitive returns and usability.”

Binance US CEO Brian Shroder said in an interview

Similar to its competitors, Coinbase and Gemini, Binance US will also provide attractive staking yield to its US customers. The exchange will provide a 6.4% APY on its native token, BNB, and up to 18% APY for staking Livepeer. Staking ATOM will yield a 12.2% APY and AVAX a 7%. The rates might be actually different and can vary over time.