Binance Introduces Ether Staking in US as It Steps Up Competition With Rivals

Binance will start offering 6% annual percentage yield (APY) to its U.S. customers from as low as 0.001 ETH.

By Jamie Crawley

Sep 7, 2022 at 12:51 p.m. UTC

Updated Sep 7, 2022 at 4:18 p.m. UTC

Binance.US CEO Brian Shroder (Binance.US)

Jamie Crawley

Jamie Crawley is a CoinDesk news reporter based in London.

Follow @JamieCrawleyCD on Twitter

Cryptocurrency exchange Binance is introducing ether (ETH) staking in the U.S. ahead of the Ethereum "Merge."

Binance will start offering a 6% annual percentage yield (APY) to its U.S. customers for as low as 0.001 ETH ($1.51) staked, the exchange announced Wednesday.

Staking involves users locking up their digital assets to support the running of proof-of-stake (PoS) networks.

The Merge is the Ethereum's transition from a proof-of-work (PoW) network to PoS and is expected to take place around Sept. 13-15. The hope is that the transition away from the energy-intensive PoW mechanism will improve the efficiency and scalability of Ethereum and attract more mainstream adoption.

Binance first started offering staking to U.S. customers in June and now supports the tokens of blockchains Cardano (ADA), Polkadot (DOT) and Polygon (MATIC), among several others. At the time, CEO of Binance.US Brian Shroder said the aim was to outdo the staking APYs offered by rivals such as Coinbase (COIN) and Gemini.

The timing of extending support to Ethereum suggests Binance.US sees ETH as a major staking battleground in the months ahead.

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