- Cryptocurrency exchange Gemini announced that it will support Polygon (MATIC) staking starting today.
- Support for Ethereum (ETH), Solana (SOL), Polkadot (DOT), and Audius (AUDIO) will be added in the future.
- The service comes as Ethereum prepares to transition from mining to staking with “the merger.”
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Gemini has announced support for staking, allowing users on its exchange to earn rewards in eligible crypto assets.
Gemini to offer participation
Gemini will support staking starting today, August 18.
In an announcement, Gemini said that users will initially be able to gamble and earn rewards in Polygon’s MATIC token. She also said that Ethereum (ETH), Solana (SOL), Polkadot (DOT), and Audius (AUDIO) staking will be available in the near future.
With the exception of Audius, all of those tokens are among the top 15 cryptocurrencies by market cap.
The company compared staking to Gemini Earn, another service that generates returns on deposited cryptocurrencies. While Gemini partners with third-party borrowers for its Earn service, its staking service will earn rewards from blockchain validation.
It’s unclear if Gemini plans to run its own validator nodes or will work with external validators.
Gemini points out that users who bet on their service will benefit from reduced technical requirements. Gemini will cover infrastructure costs, gas fees and fines. It also offers an institutional approach to security rather than users managing their own keys.
Gemini participation will be available in three countries: Singapore, Hong Kong and the United States (excluding New York).
Franck Kengne, Product Manager at Gemini, says that the introduction of staking “underlines [Gemini’s] commitment to offer a complete suite” of services. He added that “gambling is an important next step” in bringing new options to customers.
Gemini is among the oldest and most recognized exchanges. However, its trading volumes are relatively low: it handled only $52 million in 24 hours, while its competitors handled hundreds of millions or billions of dollars in the same period.
Today’s news comes as Ethereum prepares for its “Merge”. That event is scheduled for mid-September and will fully transition the network from proof-of-work mining to proof-of-stake.
Other cryptocurrency exchanges, including Coinbase, Binance, Kraken, FTX, Kucoin, and Crypto.com, have also introduced staking services in recent months and years. Coinbase, however, recently said that it would prefer to discontinue its staking service in the unlikely event that it is forced to censor Ethereum.
Disclosure: At the time of writing, the author of this article owned BTC, ETH, and other cryptocurrencies.