Over the years, the crypto exchange industry has evolved at a remarkably fast pace, and one of the well-known innovators in this space has been BitGo. Recently, the crypto exchange space has seen a spike in the development of staking services for customers, and in a new development, BitGo has decided to launch that service as well.
BitGo’s Staking Service
A staking service is a deposit on an exchange by way of which a user can earn annual returns on their crypto holdings. According to the announcement made by the crypto exchange, the staking service is going to be available in algorand and dash.
It is a significant step from BitGo, which has gradually grown into one of the more popular crypto exchanges in the world. Considering the fact that some of the biggest exchanges in the world, like Coinbase, are going to offer staking services, it is only natural that other exchanges are rushing to offer the same services.
The Chief Technology Officer of the company, Ben Chan, spoke about the development: “In order to be a great custodian, we need to provide our clients with the ability to use their assets in custody. Staking provides our clients with returns on their investments without ever moving their assets out of custody.”
In this regard, it should be noted that the exchange has stated that it is going to provide annual returns in the range of 7% and 13%. While it is true that those returns are higher than what is being provided by Coinbase, it is going to be interesting to see whether the company can actually poach customers due to higher rates.
Coinbase is going to offer annual returns of 6.6% at this point in time. BitGo went on to state that even when the tokens remain in cold storage, it is going to continue to generate returns for the user.
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