US-based Binance is the latest entrant into the staking game. It has joined other leading crypto exchanges by including staking rewards for cosmos (ATOM), and algorand (ALGO) cryptocurrencies. The exchange released an official announcement on Wednesday regarding this new development and stated that the returns are to be made on a month-to-month basis.
ATOM and ALGO happen to be the only PoS (proof-of-stake) cryptocurrencies listed on Binance US. The exchange based in California is a licensee of some of the leading crypto exchange platforms in the globe.
Coinbase and Kraken
The latest move made by Binance US has seen it join Coinbase and Kraken in the staking game. While they do offer staking rewards on proof-of-stake coins, Coinbase and Kraken only offer rewards for those staking on XTZ (Tezos).
At the moment Binance US has a total of twenty-eight cryptocurrencies that have been listed on its platform. The United states compliance laws will continue to remain a chief disquiet for a Binance offshoot. The exchange has already publicly stated that it is still waiting for clarification on matters related to Tezos.
Binance did not, however, inform the public on how much crypto enthusiasts would get to earn for each. But in the case of Tezos staking, Coinbase and Kraken are able to offer returns of approximately six percent, based on network figures.
Staking is a substitute to PoW (Proof of Work) mining and is seen to encourage the crypto assets holders to take part in network activities by placing their current holdings in dedicated public addresses.
Network users are then able to compound holdings via rewards disbursed by the network. These are used to verify transactions while at the same time helping to enhance the security of the entire network.
Binance US was founded in September 2019. The main reason for introducing it was to help cater to the needs of its customers based in the United States. This is a move that was necessitated by the booting of United States-based clients from the Binance proper platform earlier in the summer of 2019.