Kraken Exchange Now Allows Users to Stake ETH on Its Platform

Kraken, the online cryptocurrency exchange, has announced that it has enabled the ability for its users to stake ETH via the new ETH 2.0 Beacon Chain directly on the exchange.

As far as major cryptocurrency exchanges go, Kraken appears to be one of the first to announce the opportunity for its users.

At press time, Kraken had recently enabled the staking ability, marking a major step in the continued growth of ETH 2.0.

A Win for the “Small” ETH Holder

Kraken will be allowing ETH users of all sizes to delegate their ETH for staking. With the launch of ETH 2.0 and the adoption of a Proof-of-Stake transaction verification methodology, only users with a minimum of 32 ETH would be able to run a node, thus allowing them to validate the network.

Currently, 32 ETH costs around $20,000, a hefty sum for the average crypto enthusiast. Kraken will enable users holding any amount of Ethereum to stake via the platform.

This will allow users to earn passive income on their holdings. Users will receive rewards ranging from 5% to 17% average percentage yield (APY) per year and will receive ETH rewards on a weekly basis.

Other Benefits

Another feature Kraken will be adding next week (although not for American or Canadian users) is the ability to trade staked ETH for unstaked ETH.

Once ETH is staked on the ETH 2.0 network, that ETH cannot be accessed or traded until the next phase of the project. However, Kraken will soon enable a special trading pair to circumvent this limitation:

“As a courtesy to clients who may wish to exchange their staked ETH for unstaked ETH, Kraken will provide a special trading pair for this purpose until the ability to unstake ETH is available on the Ethereum network.”

This will likely give users more freedom over their collateral compared with regular ETH 2.0 stakers who won’t be able to take advantage if they independently run an ETH node.

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Harrison is a reporter and lead specialist at BeInCrypto based out of Tel Aviv, Israel. Harrison has been involved in the cryptocurrency space since late 2016 and is passionate about decentralized ledger technology and its potential.

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