Integration introduces secure, custodial Bitcoin staking model supporting PoS networks — a first for Kraken clients
CHEYENNE, Wyo.--(BUSINESS WIRE)--Kraken, one of the longest-standing, most liquid and secure cryptocurrency exchanges, today announced the launch of Bitcoin (BTC) staking through a new integration with the Babylon Bitcoin staking protocol, a Bitcoin-native staking protocol. The integration enables Kraken clients to earn passive rewards on their BTC without bridging, wrapping or lending it out.
Beginning today, Kraken clients can choose to stake their Bitcoin directly from Kraken through an integration with the Babylon Bitcoin staking protocol. The BTC is locked in a vault on the native Bitcoin chain and delegated to secure Proof of Stake networks via the Babylon protocol. Staked Bitcoin rewards are paid in BABY, the native token for Babylon Genesis, the first L1 network to be supercharged by Bitcoin.
“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,” said Mark Greenberg, Global Head of Consumer. “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.”
“Kraken’s integration with the Babylon Bitcoin staking protocol shows how trust-minimized, Bitcoin staking can work at scale,” said Clayton Menzel, Head of Business Development at Babylon Labs. “By anchoring staked BTC on the native chain and delegating it to PoS networks, Kraken clients can finally earn rewards without bridges or wrappers, helping preserve Bitcoin’s unmatched security and sovereignty. This launch channels Bitcoin’s economic gravity into securing the next wave of PoS ecosystems and marks a major step toward a truly BTC-native DeFi landscape.”
Holders’ staked BTC never leaves the Bitcoin blockchain. The staking mechanism is governed by Bitcoin scripts, and staking rewards are handled by on-chain logic on Babylon Genesis, publicly verifiable by users and third parties. The BTC staking protocol also includes cryptographic safeguards to deter and penalize malicious behaviors. Clients can unstake their BTC at any time, with a ~7-day unbonding period before funds are available for withdrawal.
This launch marks a significant expansion of Kraken’s growing staking suite and further reinforces the platform’s leadership in product innovation. Kraken was one of the first exchanges to introduce custodial staking in 2019, enabling millions of users to participate in earning rewards through its Earn platform.
The BTC staking product is available starting today across all Kraken platform interfaces, including Kraken and Kraken Pro.
For more information, please visit https://www.kraken.com/features/staking/bitcoin.
About Kraken
Kraken is a technology platform built on crypto that unlocks access and reduces inefficiencies to drive financial freedom — for the crypto economy and beyond.
Millions of individuals, professional traders, and institutions around the world use Kraken to trade digital and traditional assets, including cryptocurrencies, national currencies, U.S. futures, and U.S.-listed stocks and ETFs.
Kraken markets can be monitored and traded via the web or through the Kraken and Kraken Pro iOS and Android apps. Futures platforms by NinjaTrader, a Kraken company, are available on desktop, web, and mobile via www.ninjatrader.com.
For more information about Kraken, please visit www.kraken.com.
About Babylon Labs
Babylon Labs focuses on Bitcoin security-sharing protocols with a vision of building a Bitcoin-secured decentralized world. The latest software development is the world's first trustless and self-custodial Bitcoin staking protocol, which enables Bitcoin holders to stake their BTC on other decentralized systems such as PoS chains, L2s, Data Availability (DA) layers, etc, enabling stakers to earn staking rewards without the need for third-party custody, bridge solutions, or wrapping services. The greater idea is to combine the high security and wide adoption of Bitcoin with the efficiency and scalability of PoS systems, increasing Bitcoin's utility.
For more information about Babylon Labs, a developer of the Babylon Bitcoin staking protocol, please visit:
Website | Twitter | Discord | Linkedin
Contacts
Lauren Post, press@kraken.com