Staked, a non-custodial staking platform that allows investors to multiply their holdings in digital assets created on proof of stake blockchains, has been acquired by Kraken, a large American crypto exchange.
The deal's parameters aren't public, but Kraken claims it's "one of the largest deals in crypto history."
In a statement, Kraken said, "This purchase nicely compliments our existing custodial staking solution, enabling all of our clients to earn rewards on their crypto while maintaining complete control over their digital assets."Staking is a method of generating passive revenue from cryptocurrencies via the proof of stake consensus mechanism. Users pledge their crypto assets to the network in order to help validate transactions and improve security.
Users are rewarded in exchange, most typically in the cryptocurrency they stake, with average yield rates changing each network.
Solana, Ethereum 2.0, Cardano, Terra, Avalanche, Polkadot, Binance Coin, Algorand, and Polygon are among the most popular crypto assets for staking, according to data from Staking Rewards.
The fact that Staked provides non-custodial access to cryptocurrencies means that customers retain complete control over their private keys, which is a major element of Kraken's latest acquisition.
According to Kraken, the exchange respects and supports its customers' right to keep custody of their crypto, even if this comes with security trade-offs.
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