Learn about the groundbreaking partnership between Kiln and Coinbase, paving the way for Ethereum (ETH) staking solutions in the cryptocurrency market. Discover how Kiln’s transparent smart contract-based staking platform is set to reshape the landscape and drive crypto adoption.”
In recent developments, Coinbase is gearing up to launch a new service tailored specifically for institutional investors, known as Coinbase Prime. However, it appears that Coinbase is taking this initiative a step further by partnering with the renowned staking specialist, Kiln. Here are all the crucial details you need to know.
Kiln and Coinbase Partnership: A Transparent Staking Solution Built on Smart Contracts
Kiln is a staking platform that provides professional staking solutions to businesses and institutions. This platform made waves in November 2022 by successfully raising a significant amount of funds during a bear market, amidst the post-crash FTX environment. Kiln managed to secure a whopping $17 million in investments from notable players like ConsenSys and Kraken.
Less than a year later, Kiln is forging another major partnership, this time with Coinbase Cloud. The exchange aims to democratize Ethereum staking solutions for its Coinbase Wallet users, with Kiln’s assistance.
One of Kiln’s standout features is its approach to staking, which is entirely based on smart contracts. This ensures a transparent and easily auditable process, a crucial aspect in a regulatory environment that is becoming increasingly stringent and is still evolving.
Kiln ensures that all operations, including validator management, deposits, and yields, are entirely on-chain through smart contracts. Additionally, Kiln has already successfully undergone an audit by Spearbit.
As a result of this collaboration, Coinbase Cloud becomes part of Kiln’s Ethereum network node ecosystem as the first external operator.
“We are thrilled to have worked with Coinbase Cloud and welcome them as the first non-Kiln node operator to strengthen Kiln’s on-chain staking platform. This integration with Coinbase Cloud is unique as it enables them to deploy other wallets and services, including decentralized exchanges (DEXs), with the same unlimited ETH staking solutions already available on Coinbase Wallet. We are fully committed to democratizing access to staking for all Ethereum users.”
- Laszlo Szabo, CEO and Co-founder of Kiln
Kiln and Coinbase Cloud Join Forces to Facilitate Ethereum Staking for Institutional Clients
Is Coinbase Cloud gearing up for massive Ethereum adoption?
“We are delighted to join Kiln’s on-chain platform as the first node operator. Combining Kiln’s expertise in smart contracts with our node expertise at [Amazon] Cloud will allow us to offer top-notch solutions to digital wallet integrators. My team and I were amazed by the seamless integration process.”
- Nick Boccardi, Product Lead at Coinbase Cloud
Kiln’s platform offers several options for institutional clients:
- Staking any amount of ETH.
- Representing the staked position with another token, without the need for additional actions.
- Providing real-time data on ongoing staking operations.
Furthermore, the staking offering can be deployed in under three weeks, provided you follow three key process stages:
- Onboarding phase: Deployment of a node operator contract.
- Integration phase: Using Kiln’s integration contract, the operator can deploy their own application and specifications.
- Reward phase: Operators, integrators, and clients can begin benefiting from rewards generated by staking on the Ethereum network.
Staking solutions on Ethereum could very well be seen as a major turning point in the finance industry of the future. This highly secure network already offers validators an attractive 5% return on their capital. This argument is likely to resonate strongly with financiers always on the lookout for the best risk-to-reward ratio for their long-term investments. Kiln and Coinbase Cloud seem to have recognized this potential and are striving to establish themselves as leaders in this emerging market.