Digital Bank Revolut to offer Crypto staking for 25 million users
Revoult a digital bank has made crypto a core part of its growth strategy for a number of years. Crypto ‘staking’ is now available for customers in the UK and the European Economic Area with Revolut, the UK-based neo-banking. Revolut, which has around 25 million customers worldwide, the vast majority of whom are in the U.K. and the European Economic Area (EEA), is rolling out the service this week, AltFi said. At first, the London-based fintech will support the staking of the tokens of Polkadot (DOT), Tezos (XTZ), Cardano (ADA) and Ethereum (ETH). Yields on the assets range from 2.99% up to 11.65%, though these are variable.
Revoult a digital bank has made crypto a core part of its growth strategy for a number of years. The digital bank has been offering crypto services since 2017, gradually stepping up its offerings over time. From solely providing buying and selling of crypto, the bank started allowing customers to transfer their assets to wallets and platforms elsewhere in 2021. In October 2022, Revolut added a feature allowing customers to spend their crypto on everyday purchases using a debit card. It received approval to offer crypto services from the Financial Conduct Authority in September.
What is crypto staking?
Cryptocurrency staking is the locking up of digital tokens to support a blockchain network’s security, integrity, and continuity. Stakers (validators) are rewarded with newly minted tokens as an incentive for offering their digital assets to keep the network running.
Is Staking safe?
Staking is supported by the Proof-of-Stake (PoS) consensus mechanism algorithm, an alternative to Bitcoin’s resource-intensive Proof-of-Work (PoW). PoW requires miners to contribute powerful computing power to secure the network. PoS, on the other hand, requires validators to stake their crypto tokens to keep the network running safely.
Arguably, the primary reason staking has become so popular is the higher APY it offers the investors compared to traditional savings accounts or even money market funds.
–No consumer protection: Cryptocurrencies operate in decentralized environments, making it impossible for institutional oversight or regulation. Since crypto markets are highly unregulated, users may be exposed to more risks of scams and theft of crypto.
High Transaction Charges: Some cryptocurrency exchange platforms and wallets may charge exorbitant fees for processing transactions associated with your wallet.
Technical Knowledge Required: Cryptocurrencies are generally a complex topic for many beginners. This complexity could make it difficult for users to assess the potential risks in trades they make, especially while staking crypto.
Price Volatility: Cryptocurrency is highly volatile. Digital tokens in the market experience continuous rising and drops in value. With such price instabilities, investors are likely to face the risk of losses.
