United Kingdom-based neo-banking platform Revolut, which boasts 25 million customers globally, has introduced crypto staking to its U.K. and European Economic Area (EEA) customers.
According to a report by London-based news agency altfi, the staking feature is expected to go live this week, allowing users to generate income on their crypto assets during its "soft testing" phase.
At present, the staking feature is available for Polkadot (DOT), Tezos (XTZ), Cardano (ADA), and Ether (ETH) crypto assets, with yields ranging from 2.99% to 11.65%. However, these yields are not guaranteed.
In cryptocurrency, staking is a process where an individual holds or locks up a certain amount of a specific digital asset in a wallet for a certain period, typically from several days to several months. This action helps secure the network and validates transactions on a proof-of-stake blockchain. In return for participating in staking, individuals are rewarded in the form of newly minted coins or a share of the transaction fees.
Over the past few years, Revolut has been incorporating cryptocurrencies into its services. In 2017, it began offering crypto trading services, which has since become a significant source of revenue for the company, particularly with the introduction of products like crypto cash back for premium users. Today, Revolut offers trading for nearly 100 different crypto tokens and assets and also enables its customers to make purchases using their crypto holdings.
In an effort to educate its customers on crypto and blockchain, Revolut has also been offering free "Learn & Earn" courses on the basics of these topics, and rewarding users who complete the program with free crypto.
In September 2022, Cointelegraph reported that the U.K.'s Financial Conduct Authority (FCA) added Revolut to its list of authorized companies offering cryptocurrency products and services.
Revolut joined 37 other firms that have been granted the green light to offer such services in the U.K. after being granted an extension to operate as a crypto asset firm with temporary registration in March 2022.
