Tezos (XTZ)
$1.94 (0.43 %) View coin
23 July 2020

BitGo adds custodial and staking support for Tezos' XTZ

BitGo now supports custodial and staking services for XTZ, the native asset of the Tezos blockchain, as reported by CoinDesk. The crypto custodian said Tezos investors could expect to earn around 6% in annual XTZ inflation rewards. BitGo’s custodial support could extend to include Bezos-based tokens “in the coming months.”

Why it matters: - BitGo gives institutional investors another viable option, alongside Coinbase Custody, to store and earn staking rewards on their XTZ holdings. Of note, crypto custodians received a boost yesterday when the Office of the Comptroller of the Currency (OCC) said any nationally chartered banks in the U.S. could provide crypto custody services. The theory is, if demand picks up, some banks might look to acquire a custodian rather than build the offering in house, and BitGo could be one of the top targets. - As we’ve noted before, it’s hard to ignore the price reaction of XTZ when it became available to stake on various retail exchanges. Exchange and custodian-based staking services are a double-edged sword, however. While these service providers make it easier to stake and often lead to a higher stake rate (less float), exchanges ultimately capture and control a larger portion of the token supply (and voting power where applicable).

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