Binance US to start offering staking rewards for Algorand and Cosmos

Binance’s US-based crypto exchange announced today that it would add support for Algorand and Cosmos staking in Feb. The exchange plans to distribute staking rewards on a monthly basis but did not release any details on the expected return. Binance US’s venture into staking comes almost two months after its parent company launched support for zero-fee Tezos staking back in Dec. 2019. Binance US does not currently list Tezos, perhaps due to some lingering regulatory concerns. But Binance US CEO Catherine Coley said in a recent podcast that the exchange hopes to list and add staking support for more Proof-of-Stake (PoS) assets in the near future.

Why it matters:

• Catherine Coley also revealed Binance US added staking services due to customer demand and to remain at the forefront of crypto’s maturation. Based on a customer survey, Catherine discovered staking was one of the core components its user base wanted. The exchange also views staking as a different mechanism for how uses can interact with cryptoassets and networks beyond trading and speculation.
• The staking services war continues to heat up as competing crypto exchanges attempt to one-up each other. Coinbase and Kraken, in addition to Binance, added staking support for Tezos last year, which was a possible catalyst for XTZ’s price run towards the end of 2019. Binance US is now adding fuel to the competition by being the first to add staking returns for assets others than Tezos. Look for Coinbase to add staking support for Cosmos soon, and the move might spark Coinbase and Kraken to explore listing more PoS assets.