Coinbase is expanding its presence in New York through new services and partnerships in the state. This week, the exchange said it is enabling crypto staking services for the residents of New York. This would allow crypto holders in the state to stake their tokens into relative blockchains and earn rewards in return.
Ether and Solana are among assets that New York-based Coinbase users can stake to churn out yields, the exchange said in an official statement shared this week.
Coinbase believes that the step could open more financial opportunities for New Yorkers.
“We estimate that residents in California, New Jersey, Maryland, and Wisconsin have collectively missed out on more than $130 million in staking rewards due to state-wide bans,” the official statement noted. “In the city that never sleeps, your money shouldn’t either.”
As per reports, tokens including Cosmos, Cardano, Avalanche, Polygona, and Polkadot can also be staked using Coinbase. Staking Cosmos can reportedly rope-in upto 16 percent in annual rewards. Staking Ethereum, meanwhile, can earn stakes an annual yield of 1.9 percent.
“Staking as a service, like that offered by Coinbase, is not a security. Recent SEC staff guidance confirms this, and the dismissal of staking cases against Coinbase by the States of Vermont, Illinois, Kentucky, Alabama, and South Carolina, confirms a national consensus has emerged,” Coinbase clarified.
This is the second major New York-centric development that Coinbase has finalized in recent days.
Last week, the exchange partnered the New York state authorities to pilot a stablecoin initiative with low income house households. Under the pilot, a group of 160 young adults picked via lottery, will be given USDC to assess the impact of “unconditional crypto support”.