Binance and Coinbase have announced their intention to launch ETH2.0 staking
Staking on Coinbase will be launched in early 2021
ETH2.0 Staking on Binance will start tomorrow, December 2nd, with participants receiving BETH: a token redeemable with ETH when ETH2.0 launches
ETH2.0 staking will most likely be a common feature on other exchanges
The crypto exchanges of Coinbase and Binance have announced their intention to launch Ethereum (ETH) 2.0 staking for eligible users. Both exchanges made their individual announcements within a 24 hour period as the Beacon Chain of ETH2.0 has been confirmed for a December 1st launch.
ETH2.0 Staking on Coinbase to Begin in 2021
In the case of Coinbase, staking of ETH2.0 coins will be launched next year and will only be available to eligible jurisdictions. In the meantime, trading between ETH2 and ETH will be available on Coinbase.
Coinbase intends to support ETH2 through staking and trading. Coinbase customers will be able to convert ETH in their Coinbase accounts to ETH2 and earn staking rewards.
While staked ETH2 tokens remain locked on the beacon chain, Coinbase will also enable trading between ETH2, ETH, and all other supported currencies providing liquidity for our customers.
We’ll be launching the above features to customers in eligible jurisdictions starting in early 2021. We’ll communicate more details closer to the launch of each feature.
Binance to Avail ETH2.0 Staking Starting December 2nd
With respect to the popular crypto exchange of Binance, Ethereum 2.0 staking will commence tomorrow, December 2nd at 00:00 UTC. The team at the exchange further clarified that rewards will be in BETH which will represent actual staking income and will be redeemable at a 1:1 when ETH2.0 goes live.
Users that participate in ETH 2.0 staking will receive BETH* at a ratio of 1 ETH = 1 BETH. In addition, ETH 2.0 staking rewards will be distributed daily in the form of BETH.
*BETH tokenizes a user’s stake in the ETH 2.0 pool at a 1:1 ratio. BETH will allow users to redeem ETH at a 1:1 ratio when ETH 2.0 Phase 1 goes live.
Binance ETH 2.0 Staking Advantages: Binance will cover all validator operating expenses for users, bear the risk of on-chain penalties, and all on-chain staking rewards will be distributed to users.
The minimum staking amount on Binance will be 0.0001 ETH with rewards estimated at between 5% and 20% APY. The rate is based on actual on-chain staking income. BETH will also be made available for trading at a later date.
Other Exchanges Will Soon Follow Suit
Coinbase and Binance announcing support of ETH2.0 staking this early is a clear indicator that other crypto exchanges and popular wallets, will also follow a similar path.