We’re excited to announce the launch of Bitcoin (BTC) staking through a new integration with Babylon, a Bitcoin-native staking protocol. This integration enables clients to earn passive rewards on their BTC without bridging, wrapping or lending it out.
Beginning today, clients can choose to stake their BTC directly from Kraken. Their BTC is delegated, via Babylon, to secure Proof-of-Stake (PoS) networks. Staked Bitcoin rewards are paid in $BABY, Babylon’s native token.
Clients retain full ownership of their BTC, which never leaves the Bitcoin blockchain. The staking mechanism is governed by a smart contract, so users and third parties can verify how rewards are handled. The BTC staking protocol also includes cryptographic safeguards to deter and penalize malicious behaviors. Clients can unstake at any time, with a 7-day unbonding period before funds are returned.
This launch marks a significant expansion of our growing staking suite and further reinforces our leadership in product innovation. We were one of the first crypto exchanges to introduce custodial staking in 2019, enabling millions of users to earn rewards through our Earn platform.
Kraken Global Head of Consumer Mark Greenberg: “A substantial amount of bitcoin currently sits idle on our exchange, representing a significant opportunity cost for clients and a missed opportunity for the broader ecosystem. With this launch, clients can now earn a return on their BTC while also enabling emerging PoS blockchains to benefit from the economic weight of Bitcoin in order to validate transactions and bolster the security of their networks.”
The BTC staking product is available starting today across all our platform interfaces, including Kraken and Kraken Pro.
Geographic restrictions apply. Projected annual rate is an estimate based on the average staking rewards accrued over the past period, before commission, and is subject to change. Staking involves risks including no guarantee of rewards, potential loss from slashing or hacks, and depreciation in the value of assets while staked. Please refer to Kraken’s Terms of Service for additional information.
