Coinbase Custody has been staking more than 65 million Tezos (XTZ) as of 30 March, according to a research by The Block’s John Dantoni.
Despite imposing higher fees, Coinbase Custody is considered the largest operator of Tezos staking validator.
Coinbase Custody is one of the services launched through Coinbase Exchange in the cryptocurrency market. This service mainly targets corporates and institutions rather than individuals.
Through this platform, the U.S.-based company deals with hedge institutions and major investment companies that plan to buy large amounts of digital assets.
Coinbase’s XTZ stake reaches $110M
In April 2019, Coinbase Custody started to expand the staking of XTZ, which equates more than $110 million at today’s XTZ price of nearly $1.7.
Coinbase is followed by Kraken and Binance in terms of staking conditions. The three companies together dominate nearly 19 percent of the XTZ market.
Dantoni noted that the launch of the XTZ staking service on the platform was relatively small in the beginning especially when compared with Cryptium Labs, which had been operating in the past nine months.
At one point, Polychain Labs had become the largest validator on the network, before being outperformed by Coinbase in mid-December, he added.
Coinbase generated 1187 percent more XTZ in the second quarter of 2019, around 601 percent more in the third quarter of the same year, and about 139 percent more in the last quarter.
By the first quarter of 2020, Coinbase’s validator produced 86 percent more XTZ compared with Cryptium Labs.
Coinbase imposes the largest fees of 25 percent on XTZ staking, while Kraken charges 7.25 percent. On the other hand, Binane receives no charges on XTZ staking.
Coinbase earlier announced that it has deposited USDC stablecoins worth $1.1 million into the pools powering two of Ethereum’s most popular decentralized finance (DeFi) applications: Uniswap and PoolTogether.