Key points to remember
- Cryptocurrency exchange Gemini has 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 is being introduced as Ethereum prepares to transition from mining to staking with “the merger”.
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Gemini has announced support for staking, allowing users of its exchange to earn rewards on eligible crypto assets.
Gemini will offer staking
Gemini will support staking starting today, August 18.
In an announcement, Gemini said that users will initially be able to stake and earn rewards on Polygon’s MATIC token. He 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 these tokens are among the top 15 cryptocurrencies by market capitalization.
The company pitted staking against Gemini Earn, another service that generates returns on deposited crypto. While Gemini partners with third-party borrowers for its Earn service, its staking service will derive rewards from blockchain validation.
It is unclear if Gemini plans to run its own validator nodes or if it will work with external validators.
Gemini notes that users who stake with its service will benefit from reduced technical requirements. Gemini will cover infrastructure costs, gas fees and curtailment penalties. It also offers an institutional approach to security rather than letting users manage their own keys.
Gemini staking will be available in three countries: Singapore, Hong Kong, and the United States (excluding New York).
Franck Kengne, product manager at Gemini, says the introduction of staking “highlights [Gemini’s] commitment to offering a full range of services. He added that “staking is an important next step” to provide new options for customers.
Gemini is one of the oldest and most recognized exchanges. However, its transaction volumes are relatively low: it only processed $52 million in 24 hours, while its competitors processed hundreds of millions or billions of dollars in the same period.
Today’s news comes as Ethereum prepares for its “merger”. This event is scheduled for mid-September and will ensure the complete transition of the network from Proof-of-Work mining to Proof-of-Stake.
Other crypto exchanges including Coinbase, Binance, Kraken, FTX, Kucoin, and Crypto.com have also introduced staking services over the past few months and years. Coinbase, however, recently stated 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 this article, the author of this article owned BTC, ETH, and other cryptocurrencies.