Bitstamp Launches Staking Offering For US Customers

Customers can earn staking rewards of up to 5% with ether and algorand

article-image

Bitstamp’s Bobby Zagotta | Source: Bitstamp

share

key takeaways

  • CEO of exchange’s US business says investors are looking beyond the traditional financial ecosystem amid high inflation
  • Bitstamp plans to allow users to stake other assets in the coming months

Cryptocurrency exchange Bitstamp has introduced a staking offering for its US retail and institutional customers as investors seek out alternatives amid inflation and low yields.

Through the company’s Bitstamp Earn, users can participate in securing the Ethereum and Algorand networks and earn staking rewards of up to 5% annually. Bitstamp plans to roll out support for staking other assets in the coming months.

Customers can use the ether (ETH) or algorand (ALGO) they already own or buy new assets. 

Bobby Zagotta, CEO of Bitstamp’s US business, said record-high inflation is causing a number of Americans to delay retirement, noting more people are starting to look beyond the traditional financial ecosystem. He cited a company survey that found 76% of retail investors are “excited” for crypto writ large to reach the mainstream.

“Staking offers customers a way to make their crypto work hard for them as they diversify and strengthen their portfolios,” Zagotta told Blockworks. 

The survey found 80% of institutional investors anticipate crypto overtaking traditional financial products within a decade. More than half of retail investors reported thinking that cryptocurrencies will overtake traditional currencies over the same span. 

The launch comes ahead of Ethereum’s long-anticipated merge from a proof-of-work blockchain to a proof-of-stake network. 

The share of ETH in Bitstamp’s assets under management globally has risen 70% since January 2021, according to the company. The crypto exchange also reports a trend of more first-time crypto buyers in the US buying ether, compared to bitcoin.  

Of Bitstamp’s users worldwide, the highest staking adoption is among clients between the ages of 45 and 50, who have staked more than 30% of their ETH. 

Crypto exchanges have rolled out staking offerings in recent years, including Kraken, which acquired staking platform Staked last December to expand its number of supported networks and enable a non-custodial alternative to the company’s existing custodial staking service.

The average staking yield increased 11% quarter over quarter to 15.4%, according to a report published by Staked in April. Annualized staking rewards hit an all-time high of nearly $15 billion during the first three months of 2022, Staked found, up 57% from the first quarter of 2021.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research report - cover graphics (1).jpg

Research

In this report, we dive into crypto private market data to gather insights on where the future of the industry is headed. Despite a notable downturn in private raises, capital continues to infuse promising projects that aim to transform payments, banking, consumer experiences, community, and more, with 2023 being the fourth-largest year for crypto venture capital.

article-image

Revolut said that the standalone crypto exchange is currently “invite only”

article-image

The stock price jump comes after Coinbase reported ending its seven-quarter run of net losses during the fourth quarter

article-image

BUZZ holds shares of Coinbase, Robinhood and MicroStrategy

article-image

Opinion: Even though I didn’t pay for my “Diamond Hands” burger with BTC, don’t let that fool you into thinking that crypto’s development is futile

article-image

The results mark “a major positive inflection point,” one analyst says, as the exchange carries net income momentum into a crypto rally

article-image

While the slate of 10 US spot bitcoin funds have tallied $4.6 billion of net inflows thus far, half of the field is lagging the leaders