Exclusive: Revolut launches crypto staking for millions of users for DOT, XTZ, ADA & ETH

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Digital BankingSavings and investingCrypto

Neo-banking challenger Revolut has made crypto a central part of its growth strategy for several years.

Image source: Revolution

Revolut, the UK-based neo-banking challenger that claims 25 million customers worldwide, has soft-launched crypto “staking” for customers in the UK and European Economic Area.

A full staking launch will begin rolling out this week, according to AltFi, allowing users of its app to earn income on crypto assets with the product in “soft testing.”

The rollout of crypto at Revolut has spanned several years, with the company first offering trading to users in November 2017.

Since then, it has become a major revenue driver with product launches such as crypto cash back offered to premium users.

The company now offers almost 100 different crypto tokens and assets to trade, as well as the ability to make purchases using crypto balances.

Revolut also offers free courses to its users on the basics of crypto and blockchain, with those who complete the program being rewarded with free crypto. More than a million people took the course in its first month around July 2022.

Staking is currently limited to DOT, XTZ, ADA, and ETH crypto assets with yields ranging from 11.65% to 2.99%. These are of course not guaranteed.

What is crypto staking?

Crypto staking occurs when the holder of a cryptocurrency in a wallet lends their assets, for a certain period of time, to help support the security and operation of a blockchain network.

In exchange for their support, the staker earns rewards in the form of new tokens or part of the transaction fee. This process secures the network.

For example, where a cryptocurrency allows staking – and not all of them – you can “stake” some of your holdings and earn a percentage reward over time. Popular stackable crypto assets include Ethereum, Tezos, Cosmos, Solana, and Cardano.

Bitcoin, on the other hand, does not allow staking. Although it is the original decentralized cryptocurrency, which means there is no central institution in charge, it works through a proof-of-work consensus mechanism called “mining”. .

Is crypto staking safe?

Cryptocurrencies that allow staking use a “consensus mechanism” called Proof of Stake. This is how they ensure that all transactions are verified and secure with no bank or payment processor in the middle. Your crypto, if you choose to stake it, is part of this process.

Staking involves risk, which is why it is rewarded with financial return. The security of crypto staking depends on several factors, including the security of the staking platform or wallet used, the overall security of the blockchain network, and the risk of hacks or other malicious attacks.

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