Kraken has revolutionized the way Bitcoin holders can earn passive income by introducing Bitcoin staking through an integration with Babylon, a Bitcoin-native staking protocol. This groundbreaking feature allows clients to earn rewards on their BTC without the need for bridging, wrapping, or lending it out.
How It Works
Clients can now stake their BTC directly from Kraken, delegating it via Babylon to secure Proof-of-Stake (PoS) networks. Rewards are paid in $BABY, Babylon’s native token, offering a new avenue for earnings.
Key Benefits
- Full ownership of BTC is retained, as the Bitcoin never leaves the blockchain.
- The staking mechanism is governed by a smart contract, ensuring transparency in how rewards are handled.
- Cryptographic safeguards are in place to deter and penalize malicious behaviors.
- Flexibility to unstake at any time, with a 7-day unbonding period before funds are returned.
A Milestone for Kraken
This launch significantly expands Kraken's staking suite, reinforcing its leadership in product innovation. Since introducing custodial staking in 2019, Kraken has enabled millions to earn rewards through its Earn platform.
Mark Greenberg, Kraken Global Head of Consumer, highlights the opportunity for clients to earn a return on their idle BTC, while also supporting the security of emerging PoS blockchains.
The BTC staking product is now available across all Kraken platforms, including Kraken and Kraken Pro, with geographic restrictions applying.
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