Major cryptocurrency exchange Bitfinex has become the latest exchange to offer staking services to customers.
Announced April 3, Bitfinex will offer staking rewards up to 10% per annum on crypto assets underpinned by a Proof-of-Stake algorithm.
"We're committed to engaging our existing users and the wider community with new products and innovations," said Bitfinex’s CTO, Paolo Ardoino. "The Bitfinex Staking Rewards Program provides our users with another avenue to increase their holdings on our platform."
Bitfinex introduces staking in response to customer demand
Ardoino states that Bitfinex’s clients asked for staking to be introduced, noting that staking allows traders to generate passive income by holding crypto assets on the exchange.
Bitfinex will launch staking with support for three cryptocurrencies: EOS, V-Systems (VSYS), and Cosmos (ATOM). The exchange’s CTO adds that more stackable tokens will be added in the coming months — with Tezos (XTZ) staking currently slated to launch in May.
Ardoino also revealed that Bitfinex will be launching new products “related to P2P margin trading and lending” and derivatives in the near future.
To promote its staking service, Bitfinex is offering a competition in which participants can win branded Bitfinex apparel.
Crypto exchanges compete for passive income market share
Cryptocurrency exchanges are offering increasingly competitive options for customers to generate passive income from holding crypto assets.
On March 24, OKEx consolidated its lending , staking, and term-deposit services under an umbrella "Earn" interface. OKEx offers passive income streams for 32 crypto assets.
Lennix Lai, the director of financial markets at OKEx, recently told Cointelegraph, “Staking is a unique passive income that could never be available in the traditional banking market. There's no staking product in banking and finance.”
On March 23, Crypto.com launched its "Crypto Earn" services, offering returns of up to 12% per annum on TrustToken stablecoins deposited on the platform.
Sean Rach, CMO of Crypto.com, told Cointelegraph that the increasing proliferation of products that generate passive income is allowing crypto to “compete with banks for users who are frustrated with incumbent financial institutions and their traditional models of banking.”