Coinbase has launched native SUI staking on its platform, allowing users to earn automatic rewards without needing to run a node or manage an external wallet. The move lowers barriers for retail and institutional investors but raises concerns about concentration of stake with large exchanges, reflecting a wider 2025-2026 push by exchanges into proof-of-stake staking.
Coinbase now offers native SUI staking directly on its platform, enabling users to earn rewards automatically in their exchange account without running a node or relying on an external wallet. The update adds SUI, the main token of Mysten Labs’ Sui blockchain, to the exchange’s list of proof-of-stake products for both individual and institutional customers.
Delegating SUI will be handled solely by Coinbase’s custodial infrastructure, with rewards added automatically. Users do not need to transfer their assets, pick a validator, or manage their own custody.
SUI is an object-focused network with a delegated proof-of-stake model, launched on mainnet in 2023. It is designed for running multiple transactions simultaneously, achieving high processing speeds, as stated by Binance Academy.
Investors can now earn network yield from assets held in a regulated custody environment without transferring tokens or taking the on-chain route. This cuts the effort for institutions to obtain staking rewards without running nodes themselves.
More stake going through exchanges could bring a higher locked supply percentage for SUI, but it will create concentrated delegation in the hands of large providers like Coinbase. This situation has occurred before with ETH and SOL, according to the article.
The move is part of a wider exchange push into staking through 2025 and 2026, as yield remains a popular feature and regulatory conditions become clearer in several regions. By expanding its staking infrastructure, Coinbase adds another proof-of-stake network beyond Bitcoin as a staking option.
These changes have opened questions about decentralization, validator distribution, and how staking pools would be treated by regulators. Coinbase announced on X: “You can now stake SUI – directly on Coinbase. Instant rewards, accumulated straight to your account. Less time spent searching, and more time spent earning.”
