The newest enticement in the crypto world is something traditional investors know very well: interest payments.

Coinbase, a platform where users can buy and sell bitcoin and other cryptocurrencies, is launching a program for institutional investors that will pay them a set interest rate, likely between 5% and 8%, when they park money in its custody service. The program, called “staking,” comes with a crypto twist. The interest is earned only if customers are holding certain cryptocurrencies, and the interest will be paid in...