Social and multi-asset brokerage eToro has announced that it will provide a staking-as-a-service feature to reward TRON and Cardano holders
The dedicated staking service will be available to Cardano and Tron users as the platform seeks to expand into other virtual currencies. EToro users who also hold Cardano and Tron will receive monthly staking rewards.
As the payment trading system is automated and fully incorporated, users will not need to take any action, but will trade assets as they normally would. The virtual currency market is famous for its volatility, so the bet will provide traders with an opportunity to earn returns regardless of whether prices fall or rise.
The staking service, however, also has a disadvantage, which is the lack of an option to sell delegated tokens during a blocking period.
EToro pointed out that there would be an “introductory period” requirement that needs to be met before a user is eligible to earn rewards. The user must keep the cryptocurrency for some time before becoming eligible to receive the rewards.
Speaking about the announcement about the service launch, eToro CEO Yoni Assia said that: “Staking is an important development in the cryptocurrency market, but it is difficult for people to access its benefits on a secure platform, which is why we are offering this new service to our global investor community. “
It is important to note that staking rewards will be compounded on a monthly basis, which translates into reduced staking yield compared to independent staking. As compensation, the brokerage platform will provide generous rewards.
A broker representative spoke on the matter, saying: “Staking customers on eToro benefit from doing so on a regulated and globally trusted platform. We also believe that the staking rewards on our platforms are among the most generous on the market, with a minimum of 75% of the staking yield”.
eToro joins Binance and Kraken who already provide staking services. Although Coinbase said it is in the process of introducing staking for the Ada token this year, the exchange has yet to make an announcement about it.