Kraken Launches Bitcoin Staking Service With 1% APR

Kraken, a leading cryptocurrency exchange, has launched a new Bitcoin staking service in partnership with Babylon. This service allows users to earn up to 1% annual percentage rate (APR) on their staked Bitcoin, with rewards paid out in Babylon’s native token, $BABY. The staking feature is accessible through Kraken’s standard and Pro platforms, as well as its mobile apps. Users can activate staking by creating a Kraken account, purchasing or depositing BTC, and selecting the “Earn” tab. There is no minimum balance required, and rewards are distributed weekly after daily accrual.

Kraken manages all technical processes involved in staking, including bonding, participation, and reward distribution. This eliminates the complexity typically associated with staking activities. Users retain control over their Bitcoin, which remains secured on the Bitcoin blockchain. This initiative leverages Babylon’s protocol to enable Bitcoin to support proof-of-stake (PoS) networks. By staking BTC, users contribute to the security of emerging decentralized ecosystems. As the Babylon ecosystem expands, stakers may also begin earning rewards from additional network tokens integrated into the platform.

Kraken highlights three core advantages for its staking service: fast onboarding, seamless exchange integration, and industry-leading security. With over 430 cryptocurrencies available for trading and staking, Kraken continues to position itself as a top-tier platform for digital asset management. By offering Bitcoin staking through Babylon, Kraken provides a new way for BTC holders to generate yield while participating in the evolution of decentralized PoS infrastructure, all without compromising asset safety.

This move by Kraken is part of a broader trend in the cryptocurrency industry, where exchanges are increasingly offering staking services to attract and retain users. The integration with Babylon's DeFi protocol allows users to time-lock their native Bitcoin directly, earning yield from Babylon's Proof of Stake (PoS) networks. This approach not only simplifies the staking process but also ensures that users maintain custody of their Bitcoin throughout the staking period. The launch of this service is expected to enhance Kraken's competitive position in the market, as it offers users a convenient and secure way to earn passive income on their Bitcoin holdings.