Coinbase to Focus on Staking Ahead of Ethereum Merger

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US cryptocurrency exchange Coinbase will continue to focus on staking as the second-largest cryptocurrency moves to a new Proof-of-Stake algorithm.

In its letter to shareholders, Coinbase said,that he considers staking one of his priority products and an “early victory” for the company. The exchange has a long-term goal of becoming the leading staking provider among cryptocurrency companies.

“Since our main retail clientstrading less, monthly transacting users are more inclined to non-investment activities, especially staking,” the report says.

In the second fiscal quarter of this year, 67% of the exchange's monthly transaction users used non-investment products offered by the company, including staking.

Coinbase will continue to emphasize staking as part of its business model as the second-largest cryptocurrency, Ether (ETH), will soon move to Proof-of-Stake (PoS).

“At the beginning of August, for the first time we began to offerETH staking for institutional clients. We will continue to add more staking assets for both our retail and institutional clients in the future,” the letter reads.

As a reminder, Coinbase offers rewards for staking Ethereum, Cosmos, Algorand and Tezos. In March of this year, the company added Cardano to this list, and in June - Solana.

Earlier, Coinshares analysts recorded growthinterest of institutional investors in ETH. According to experts, many expect the growth of the second cryptocurrency before the Ethereum network switches to a new algorithm.