Coinbase has announced that users in the UK, France, Spain and the Netherlands will now be able to earn 'interest' on their cryptocurrency holdings.

Following a successful rollout in the US - where customers have earned over $2 million in Tezos staking rewards - the scheme will now let European customers actively participate in its Tezos network.

"While it’s possible to stake Tezos on your own or via a delegated staking service, it can be confusing, complicated, and even risky with regard to the security of your staked Tezos," explained product manager Rhea Kaw.

The current estimated annual return for Tezos staking on Coinbase is around five per cent. "You’ll see your pending rewards increase in real-time in the app, and once your initial holding period completes (35 to 40 days), you’ll receive rewards in your account every three days."

The return rate stated by Coinbase is a projection based on the rewards generated over the past 90 days. The Tezos network sets the underlying return rate depending on the number of staking participants. Coinbase distributes the rewards to customers and keeps a portion as commission.

It also noted that, like many cryptocurrencies, the price of the staked asset - in this case Tezos - is subject to market dynamics and will fluctuate in price as dictated by the market.

Separately, earlier this week Coinbase agreed to acquire Tagomi, a crypto prime brokerage platform.

"The addition of Tagomi will round out our product suite for the fast-growing institutional trading market," read a statement. "It will allow us to offer custody, professional trading features, and prime brokerage services on one platform, giving sophisticated investors the seamless, powerful trading experience they have come to expect in equities and FX markets."

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