Binance and Coinbase launch Ethereum (ETH) 2.0 staking

Quick grip:

  • Binance and Coinbase have announced their intention to launch ETH2.0 staking
  • Staking on Coinbase will be launched in early 2021
  • Staking of ETH2.0 on Binance will begin tomorrow, December 2nd, with participants receiving BETH: a token redeemable for ETH when ETH2.0 is launched
  • ETH2.0 staking will most likely be a common feature on other exchanges

Coinbase and Binance cryptocurrency exchanges 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 ETH2.0’s Beacon Chain was confirmed for launch on December 1st.

ETH2.0 Staking on Coinbase will start in 2021

In the case of Coinbase, ETH2.0 coin staking will be launched next year and will only be available for eligible jurisdictions. Meanwhile, 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 is earn staking rewards.

While the targeted ETH2 tokens remain stuck on the beacon chain, Coinbase will also allow trading between ETH2, ETH and all other supported currencies that provide liquidity to our clients.

We will launch the above features to customers in eligible jurisdictions beginning in early 2021. We will communicate more details as each feature is launched.

Binance to Avail ETH2.0 Staking starting December 2nd

As for Binance’s popular cryptocurrency exchange, Ethereum 2.0 staking will begin tomorrow, December 2nd at 00:00 UTC. The team at the exchange further clarified that the rewards will be in BETH which will represent actual staking income and will be redeemable at 1: 1 when ETH2.0 becomes available.

Users participating in ETH 2.0 staking will receive BETH * with a ratio of 1 ETH = 1 BETH. Additionally, ETH 2.0 staking rewards will be distributed daily in the form of BETH.

* BETH tokenizes a user’s share 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 is available.

Benefits of Binance ETH 2.0 Staking: Binance will cover all validator operating expenses for users, bear the risk of on-chain penalties, and all rewards for on-chain staking will be distributed to users.

The minimum staking amount on Binance will be 0.0001 ETH with estimated rewards 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 for ETH2.0 staking so early is a clear indicator that other popular cryptocurrency exchanges and wallets will follow a similar path as well.

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