Kraken crypto exchange is launching a new Bitcoin staking product through its integration with Babylon Labs' protocol. This enables users to earn rewards on their holdings.
Integration with Babylon Labs
Kraken announced a partnership with the Bitcoin staking protocol Babylon, launching a new service for its users. This integration allows clients to earn interest on their Bitcoin assets without the need for bridging or lending.
Conditions for Bitcoin Staking
Starting today, Kraken users can utilize the new service by staking their Bitcoin without interacting with external wallets. The Bitcoin will be secured in a vault on the blockchain and delegated to proof-of-stake networks through Babylon.
Opportunities and Implications of Staking
Rewards are not paid in Bitcoin but in Babylon’s BABY tokens; since the announcement, the BABY token price has increased by nearly 5%. Mark Greenberg, Kraken's global head of consumer, stated that a significant amount of Bitcoin remains idle on the exchange, representing missed opportunities for both clients and the ecosystem.
The launch of Bitcoin staking at Kraken provides users with a new income opportunity while also contributing to the security of proof-of-stake networks, positively impacting the cryptocurrency ecosystem.
