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Kraken Introduces Bitcoin Staking
By Mark Hunter
Sat Jun 21, 2025 10:16:46
Reading Time: 2 minutes
In a significant move, Kraken has launched native Bitcoin staking through Babylon, enabling users to earn rewards without having to wrap or transfer their coins. This new feature allows full on-chain custody of the user’s Bitcoin, unlike traditional staking solutions that often require wrapping assets onto other chains.
Kraken’s Global Head of Consumer notes that a substantial amount of Bitcoin currently sits idle on the exchange, representing a significant opportunity cost for clients and the broader ecosystem. He believes that this service will unlock passive yield potential without compromising custody or decentralization.
As a result, Kraken is expanding its staking services to include assets like Ethereum, Solana, and Polkadot, in addition to Bitcoin. The new service features weekly payouts to participants and a seven-day unstaking period.
It’s essential to note that the yields are variable but currently sit around 1% APR, with rewards paid out in Babylon’s native BABY token.
Source: fullycrypto.com
