Kraken Unveils Bitcoin Staking in Partnership with Babylon

The cryptocurrency exchange Kraken has officially launched staking for Bitcoin in collaboration with the BTCFi project, Babylon.

This integration enables users to earn rewards without the need for bridges or «wrapped» assets.

Users can delegate their coins through Babylon to enhance the security of Proof-of-Stake (PoS) networks. Rewards are granted in the native token of the protocol, BABY.

According to the announcement, clients will maintain full control over their coins, which will remain on the Bitcoin blockchain. The process is managed by a smart contract, and the protocol employs cryptographic measures to defend against malicious attacks.

Assets can be withdrawn from staking at any time, with a seven-day unlocking period.

Mark Greenberg, head of Kraken’s consumer division, pointed out that a significant amount of Bitcoin on the exchange remains inactive.

“Now, clients can earn income from their BTC, while new PoS blockchains can utilize Bitcoin’s economic weight to validate transactions and bolster the security of their networks,” he added.

Kraken described this launch as an expansion of their staking product offerings. The new service is available across all of the exchange’s platforms, including Kraken and Kraken Pro.

Babylon stands out as a leading BTCFi project by total value locked (TVL), which has reached $4.9 billion, according to DeFi Llama.

In April, the Babylon team launched the main L1 network Genesis and conducted airdrop of BABY.