Revolut, the digital bank valued at $33 billion, is giving its customers the opportunity to earn cryptocurrency rewards by “staking” their coins. This new feature will be available to customers in Britain and over 30 European countries as part of Revolut’s plan to expand its crypto-related services.
Proof-of-Stake Blockchain
Customers who own crypto assets that use a proof-of-stake blockchain can stake some of their assets to potentially validate transactions. In exchange for their work, validators receive transaction fees and/or newly created crypto assets. The more assets a validator stakes, the higher the chances of getting work. Revolut will use third-party validators to reward its customers.
Rewards Vary by Customer and Token
The rewards for staking will vary depending on the customer and the token staked, but customers could earn up to 11.65% annual percentage yield, according to Revolut. The cryptocurrency market suffered a decline last year due to a combination of interest rate hikes and high-profile collapses.
As a result of these losses, lawmakers are calling for regulation in the industry. Britain’s finance ministry recently laid out its first set of rules to regulate cryptoassets.
Revolut ensures customer security by holding their staked funds with “trusted custodians.” Although the spokesperson did not specify who these custodians were, they did state that Revolut completed its own due diligence to establish their trustworthiness.
