Tezos (XTZ) Price on The Rise with Coinbase Custody Supporting Baking Staking
Participating in proof-of-stake networks grants awards to token holders, avoiding passive losses through inflation.
Coinbase Custody announced the addition of a Tezos (XTZ) baking option, allowing users to both store their assets in an offline wallet, and also register the assets with bakers to receive rewards. Baking is a way to use tokens that are otherwise left idle. Baking involves a delegated entity that produces blocks, as well as locking in tokens for a predetermined period.
The rumors of Coinbase Custody adding a baking mechanism circulated in the past days, boosting the general revival in XTZ prices. The rally extended following the official confirmation of the service.
XTZ traded at $0.85 as of 12:04 UTC on Friday, rising from previous peaks at $0.78. The asset has gained a net 18% in the past 24 hours, with indications the rally may continue for a while. XTZ trading volumes are extremely slim at $7.2 million in 24 hours, potentially allowing for a fast and dramatic price swing.
“The launch of Tezos staking through Coinbase Custody serves an acute need that existed up until now: a way for institutional participants who rely on a secure, offline custodian to take an active role in the network,” said Kathleen Breitman, co-founder of Tezos.
“Achieving our mission of creating a ‘digital commonwealth’ means facilitating participation for all, and that includes the institutional customers that Coinbase Custody brings to the space.”
The XTZ market price has already managed to increase its value significantly in the past month, rising from lows around $0.40.
The Tezos network was selected as the first of its kind on Coinbase Custody, due to the network’s architecture and the structure of baking, as well as consumer demand. On Coinbase Custody, the assets are protected both technologically through cold storage, and insured with some of the biggest names in the industry. Additionally, Coinbase will run a node and a validator for Tezos and any additional networks, to ensure the safety of funds.
In the future, Coinbase Custody has announced the potential to add other networks offering staking or governance, with the option to add Maker (MRK) next.