The cloud division of crypto exchange Coinbase has integrated an on-chain staking protocol called Kiln to provide native ETH staking below the standard minimum requirement.
Conventionally, native ETH staking necessitates a minimum of 32 ETH ($51,000) to establish a single network validator, a condition that is prohibitive for many interested participants. Coinbase Cloud‘s integration with Kiln will allow crypto users to stake smaller amounts in a non-custodial fashion, allowing them to maintain control of their funds directly from wallets.
Utilizing specialized smart contracts, Kiln offers a flexible approach to ETH staking. It permits pooling stakes to collectively reach the 32 ETH minimum, serving as an alternative to similar flexible staking options found in liquid staking protocols like Lido and Rocket.
“We are thrilled to have worked with Coinbase Cloud and to welcome them as the first (non-Kiln) node operator leveraging the Kiln on-chain staking platform,” said Laszlo Szabo, CEO and co-founder at Kiln.
Coinbase Wallet to debut service
In the coming weeks, Coinbase’s wallet will become the first to implement this staking solution with the goal of making ETH staking more accessible, according to Coinbase Cloud.
This means that Coinbase Wallet users will have the ability to stake and earn rewards on ETH holdings regardless of the amount. Coinbase Cloud confirmed that this capability will be extended to both dapps and other self-custodial wallet providers.
“This integration with Coinbase Cloud is unique because it allows them to enable other wallets and services, including DEXs, with the same limitless ETH staking solution that will be offered by Coinbase wallet,” Laszlo Szabo added.
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