Kraken Exchange Now Offering ETH Staking Service on Its Platform

Jafrin  |  Dec 5, 2020

Kraken exchange has announced a plan enabling ETH staking through the new ETH 2.0 Beacon Chain. This will enable the customers of Kraken to earn passive income on the platform.  Validators, however, will need at least 32 ETH to run a node to enable the staking service. The crypto exchange’s move to offer ETH staking on its platform enhances the continuation of the ETH 2.0 blockchain.

Kraken Exchange Offers ETH Staking Service

Kraken exchange has launched the ETH staking service on its platform on December 4 at 13:30 UTC. With the launch of ETH 2.0 and the migration to Proof-of-Stake consensus, users need to have a minimum of 32 ETH in order to run a node. The current cost of 32 ETH stands around $20,000.

The rewards will be received between 5% to 17% average percentage yield (APY) per year and credited weekly.

Kraken will also add a new feature on its platform to trade staked ETH for unstaked. Thus, the exchange will provide a special trading pair until the ability to unstake ETH is available on the Ethereum network. Kraken mentions that the launch of the new trading pair will be in approximately one week.

Staking Suitable for Long Term Holders

Once the ETH is staked on the ETH 2.0 network, the ETH cannot be accessed or traded until the next phase of the project. The announcement release highlighted:

Clients should be aware that staked ETH cannot be unstaked, and along with staking rewards, cannot be transferred for an unknown period of time. This means that clients should only stake ETH that they plan to hold long-term. This limitation is not specific to Kraken – it is a limitation on the Ethereum network itself. 

This will enable users more freedom over their collateral in comparison to regular ETH 2.0 stakers running independent ETH nodes. However, users located in the U.S. and Canada will not be able to trade their staked ETH for unstaked ETH.

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