Kraken has announced the launch of Bitcoin staking through the integration with Babylon, allowing clients to earn on their BTC without moving them off the Bitcoin blockchain.
Kraken and Babylon Integration
The announcement, published on June 19, states that Kraken now offers Bitcoin staking through the Babylon protocol. This allows clients to retain ownership of their assets without transferring them to other blockchains.
Benefits of Bitcoin Staking
Kraken's strategy avoids the drawbacks of traditional staking solutions that require wrapping or bridging Bitcoin to other networks. The main advantage is that Bitcoin remains on its own blockchain and is not lent out or rehypothecated.
Market and Future of Staking
According to Mark Greenberg, Kraken's global head of consumer, this initiative allows for productive use of idle BTC and strengthens the infrastructure of emerging PoS blockchains. Since Babylon's launch, users have staked over 57,000 BTC, showing growing interest in decentralized finance protocols.
The new staking service is now live across all Kraken interfaces, with yields of up to 1% APR and weekly BABY rewards. This is significant for expanding the utility of Bitcoin within the crypto ecosystem.
