Coinbase Custody, Coinbase’s Their institutional cold storage custody service marked March 29th as the starting point for Tezos staking capabilities. Tezos (XTZ).
This development, being a groundbreaking move for the firm, could set a precedent for other major crypto custody players like BitGo and Fidelity to consider staking services.
Within the Tezos community, staking is often referred to as 'baking'. Until recently, only community-led initiatives allowed XTZ holders to participate. bakers By offering an enterprise-tier solution, Coinbase has become the pioneer in institutional-grade Tezos staking.
The anticipation of this move has been considerable, especially after Coinbase recruited Luke Youngblood, known for architecting Tezos’s liquid proof-of-stake design. Projects using PoS store staked tokens in specific wallets to ensure the security of their blockchain networks, differing from PoW's mining approach.
In announcing their new baking service, Coinbase highlighted that their operations seamlessly align with Tezos's architecture, tailored for safe custody transactions:
\"Tezos’s framework inherently prioritizes the safeguarding of delegated funds. This allows us to keep our clients' assets securely separated in cold storage, preventing additional risks compared to non-DPOS assets like BTC. Moreover, our staked assets benefit from comprehensive insurance coverage, backed by some of the most reputable insurers globally.\"
Coinbase's custody division emphasized their active management of validator and staking nodes on behalf of their clientele.
The company ensures that their self-run staking nodes and validators are upheld against the rigorous security protocols that have protected billions of dollars of crypto over the years.
— Insights from Coinbase Institutional March 29, 2019
Tezos's co-creator, Kathleen Breitman, hailed Coinbase’s involvement as a crucial progression for XTZ’s environment:
\"Tezos staking via Coinbase Custody bridges a gap for institutions needing a reliable offline custodian still active within the network. Our ambition to craft a 'digital commonwealth' means engaging all participants, including those institutional players Coinbase Custody introduces.\"
Beyond just supporting Tezos, Coinbase is prepared to extend these services to cover future-supported blockchains.
Coinbase is planning to roll out validation offerings for newly released projects. Cosmos Network in the second quarter of 2019.
Coinbase is diversifying its interests, not limiting itself merely to staking advancements.
Coinbase Custody, in their announcement, showed a commitment to enabling customer participation in network governance.
To that end, governance features will be introduced for Tezos and MakerDAO platforms. MKR ) projects by the end of Q2 2019.
With governance features, Coinbase Custody users can soon cast their votes with their MakerDAO tokens directly within the platform, granting institutional stakeholders a voice. https://t.co/8hxMGYlFIo
— Maker (@MakerDAO) March 29, 2019
This timing is pivotal for both projects, given the substantial governance decisions each is presently facing.
In a recent Tezos update, the community weighed in on the blockchain's first significant governance amendment. Meanwhile, Maker's community has been voting on token-related decisions. Athens The influence of governance is becoming more prominent in the world of crypto, particularly now that Coinbase is becoming more actively involved. Dai Stability Fee twice in recent times.
This move is likely to be beneficial for Maker’s ecosystem, especially since institutional MKR stakeholders haven't traditionally participated in governance. Coinbase dedicates itself to streamlining this process:
\"We've partnered directly with the MakerDAO team to ensure a smooth integration between our offline storage solutions and their VoteProxy contracts. We’re excited by the governance possibilities that we’ll be able to offer our clients directly in our app.\"
Coinbase Custody's recent initiatives are visibly bolstering the growth and potential of staking and governance across the industry.
William M. Peaster is renowned as an expert writer covering Ethereum, Dai, and Bitcoin within the crypto sphere. His work is featured on platforms like Blockonomi and Binance Academy. Enthusiastic about smart contracts and decentralized applications, he’s also delving into Solidity programming. Engage with him on Telegram @wmpeaster.
