Bitfinex, a major cryptocurrency exchange, has joined the growing list of exchanges that allow Tezos (XTZ) staking.
Tezos holders will be able to bag anywhere from three to five percent in staking rewards.
How staking works
Staking, one of the fastest-growing trends in the crypto industry, allows investors to receive steady returns for simply holding a specific digital currency in their account.
Those who are new to the crypto space can simply treat it as interest, but exchanges prefer to avoid this term due to regulatory roadblocks.
Proo-of-stake (PoS) blockchains rely on staking for governance by rewarding those who post their holdings as collateral with compensation.
Apart from Tezos, Bitfinex also allows earning rewards with a slew of other cryptocurrencies, including EOS (EOS), Cosmos (ATOM), Tron (TRX).
Major exchanges add support for Tezos
Back in April, Binance U.S., the local arm of the Binance trading platform, also launched Tezos staking. Last September, the same service was rolled out by its parent exchange.
Coinbase got the ball rolling in November by implementing staking rewards for its customers. This sparked a major 70 percent Tezos rally on the exchange.
In December 2019, Kraken joined Coinbase's suit. Its main selling point is a six percent annual reward.