Posted 12 months ago | by Ben Armstrong
Binance US Will Launch Tezos Staking – Launches Bitcoin Options Trading
Tezos (XTZ) staking has been getting more popular recent, and it will be soon available on cryptocurrency exchanges in the United States. Binance US, the US branch of the world’s biggest crypto exchange Binance, will launch staking rewards this week as well.
According to an April 13 announcement, BinanceUS plans to launch staking rewards for XTZ on April 16. Per the announcement, Binance clarified that no action will be needed for Tezos holders to start earning rewards. The exchange already supports major Tezos trading pairs, such as XTZ/BUSD and XTZ/USD.
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Earning Interest with Tezos
BinanceUS explained that the exchange will be taking hourly snapshots of the user’s XTZ balances to calculate rewards similar to already-supported staking coins on BinanceUS.
While rewards will be calculated daily, distributions will take place once per month, before the 20th day of each month. XTZ’s first distribution will take place in May 2020. Binance launched Tezos staking on its dedicated staking platform on Dec. 4, 2020.
Staking service allows users to deposit their token holdings and earn staking rewards without having to set up a node. While Binance debuted its dedicated staking service in September 2019, its US branch introduced a staking product in late January 2020.
Creating Staking Returns
To date, BinanceUS supports two tokens for staking, which include Algorand (ALGO) and Cosmos (ATOM). BinanceUS announced to launch its first Algorand on Feb. 17, then ATOM staking on March 10.
BinanceUS joined major U.S. crypto firms, such as Coinbase and Kraken, with its addition of XTZ staking support. Previously, Coinbase launched Tezos staking in November 2019, while Kraken rolled out the product in December.
New Bitcoin Options
Binance (the global platform) recently launched Bitcoin (BTC) options on its futures trading platform. The rollout was announced on April 13 and limited to the exchange’s mobile app.
Options contracts offer traders the chance to purchase either an option to buy or sell in giving an asset at a specified strike price. Binance offers the American version of the derivative, which differs from the European. The American version allows traders to exercise their settlement rights for the contract at the chosen strike price at any time before or on the expiry date.
Traders transfer their USDT holdings from their spot wallet to their futures wallet then choose an expiry date, which ranges from 10 minutes to one day for Binance’s BTC/Tether (USDT) options contracts.
Binance also noted that traders must pay a fixed value premium in the beginning, which means any prospective profits on trades will be net as well as profits minus the premium.
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