Bitstamp Launches Ethereum And Cardano Staking In The UK

Bitstamp has launched staking services for Ethereum (ETH) and Cardano (ADA) in the UK after recent regulatory changes and a deal with Robinhood Markets. UK customers can now stake ETH directly through their Bitstamp accounts. For Cardano, staking starts automatically when users deposit ADA, but they can choose to opt-out if they want. This gives users a new way to earn rewards while supporting these blockchain networks.

The company said this service lets users earn steady rewards by helping to secure the Ethereum and Cardano networks. Staking works by delegating tokens to validators who keep the blockchain running. In return, users get rewards of up to 3.10% annually for Ethereum and 1% for Cardano. It offers a way to grow crypto holdings without taking on much extra risk.

Bitstamp Pays Rewards Regularly And Has No Token Lock-Up

Earlier this year, the UK Treasury changed the rules by excluding staking from collective investment scheme regulations. This cleared up legal confusion that had held back staking services. The change allowed exchanges like Bitstamp to offer staking without having to follow strict fund management rules. This was an important move for the UK’s crypto market.

Bitstamp said users will get staking rewards either weekly or monthly depending on the token. The company itself does not require users to lock up their tokens, so they can move them if needed. However, the staking networks may have their own rules and fees, which users should check. This approach gives users flexibility while respecting the networks’ terms.

This launch is the first time a major exchange has expanded UK staking services since the rules changed. Bitstamp said it has seen more interest from retail and institutional investors looking for safer ways to use digital assets. Staking offers a lower-risk option compared to just holding or trading cryptocurrencies. The company believes this service will meet growing demand.

UK Treasury Rules Separates Staking From Traditional Investments

The UK Treasury’s rule update clearly separated blockchain activities like staking from traditional investment schemes. This helps users avoid the stricter rules that apply to collective investments. It also gives clearer guidance to crypto companies, which encourages them to offer new services. This change removes barriers for users who want to help secure the networks.

The company said clearer definitions of “qualifying crypto assets” have solved problems where staking was mixed up with pooled investment products. This clarity has helped staking become more popular in the UK. Users and companies feel more confident joining staking programs now. Bitstamp expects this will lead to more people getting involved in crypto networks.

Robinhood Markets announced last year that it plans to buy Bitstamp in a deal worth nearly $200 million in cash. The deal is meant to strengthen Robinhood’s crypto business and expand what it offers to users. The company said this will help both firms work better together and bring new features to their customers. This includes more options like staking.

Experts say Bitstamp’s new UK staking service shows how exchanges are quick to adapt to new rules and customer needs. The move shows how crypto investing is becoming easier and safer for more users. It also shows there is a strong demand for ways to earn steady rewards without big risks. Bitstamp’s example could lead other companies to expand their staking services too.