Kraken Revives Staking for U.S. Customers, Offers 17 Digital Assets

Cryptocurrency exchange Kraken has reintroduced its staking services for U.S. customers, nearly two years after settling a case with the Securities and Exchange Commission (SEC). The new offering, available through Kraken Pro, allows users in 39 eligible states to stake 17 digital assets, including Ethereum (ETH), Solana (SOL), and Cardano (ADA).

The new staking product is distinct from the one Kraken settled with the SEC in 2023. The exchange is providing mere administrative support for staking on the blockchain by connecting client tokens to the network. The service will adopt a bonded staking model, which requires users to lock up their tokens for a predetermined period, with varying lock-up durations based on the individual blockchain network. Kraken also stated that slashing insurance will be applied, offering greater risk management for users.

Staking is the process of locking up cryptocurrency to keep a blockchain's network running. Those who hold proof-of-stake assets, such as Ethereum (ETH), can pledge it to the network by sending it to a specific blockchain address. Once they've done that, stakers receive rewards for as long as they keep their assets locked up. The process has, at times, been controversial, with the SEC ordering Kraken to halt its staking service in 2023 due to allegations of securities violations.

Kraken's Global Head of Consumer, Mark Greenberg, said in a statement: "We are excited to bring back a brand new product enabling U.S. clients to resume staking with Kraken and play a significant role in bolstering the underlying security of blockchain networks." The new staking product is a welcome development for U.S. customers, who have been eagerly awaiting the return of staking services on the platform.