Britain’s most-valuable fintech start-up Revolut will soon allow users to stake their cryptocurrency assets in return for staking rewards, various sources have reported this week.
Revolut customers across the UK and Europe will be given the option to pledge their tokens to blockchain validators to help with network security and transaction validation in return for staking yields.
Following a soft launch, staking is currently limited to the following proof-of-stake blockchains: Polkadot (DOT), Tezos (XTZ), Cardano (ADA) and Ethereum (ETH).
Cited yields range from 2.99% to as high as 11.65%, although returns are predicated on market performance and are in no way guaranteed.
Cryptocurrency staking yields typically increase the longer a user locks up their tokens, but specific details in this regard are not currently available.
The combined market capitalisation of the compatible blockchains is around US$228bn (£189bn).
Revolut, which bagged a US$33bn valuation in July 2021 following a US$800mln funding round led by cornerstone investors Softbank and Tiger Global, already facilitates buying and selling certain crypto assets on its app.
With the implementation of staking, Revolut has expanded users’ options for earning interest on their crypto assets, though the group has potentially opened the doors to regulatory scrutiny under securities legislation.
Proactive has asked Revolut for further details.