Binance US to start offering Ethereum staking services ahead of Ethereum Merge.
Binance, one of the largest cryptocurrency exchanges, has launched the Ethereum staking program on its US subsidiary.
According to the blog post shared on the Binance US website, the company offers an annual percentage yield (APY) rate of 6%.
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The company claims that its program will allow users to start staking with a minimum of 0.001 ETH, highlighting that staking directly on Ethereum Network requires to stake at least 32 ETH.
It is worth noting that the staking rewards will reach the users after the Ethereum Merge is finalized. The Merge entered its first stage, called Bellatrix, on September 6th, while the final stage Paris, is anticipated to be launched around September 10th and 20th.
When talking about the launch of Ethereum staking, Binance US Chief Executive Officer Brian Shroder noted:
ETH plays a critical role in the broader Web3 ecosystem, and as the Ethereum network continues to transition towards The Merge, we are thrilled to now offer ETH staking with some of the highest APY rewards in the industry. We continue to build out a comprehensive staking offering that will provide the most value for our customers.
For comparison, Coinbase offers 3.25% APY for Ethereum staking, Lido Finance offers 3,5% APY, Nexo and BlockFi offer 4% APY.
Despite launching Ethereum staking services to its US customers, Binance is taking other measurements prior to Ethereum Merge. The company has announced its plans to halt Ether (ETH) and ERC-20 token withdrawals and deposits during the Ethereum Merge. According to the company, this way, it will bypass any trading risks and ensure the safety of user funds.
On September 5th, Binance shook the crypto market stating that it plans to convert all investments made with USD Coin (USDC), Pax Dollar (USDP), and TrueUSD (TUSD) to its own Binance USD token.
