Kraken Launches Bitcoin Staking Through Babylon Integration
Crypto exchange Kraken has launched BTC staking via a new integration with Babylon, allowing users to stake bitcoin directly while maintaining it on the blockchain.
- Babylon enables BTC to secure proof-of-stake networks without leaving the Bitcoin blockchain.
- Staked bitcoin is kept in a custodial vault and delegated to PoS networks through Babylon.
- Rewards for staking are paid in BABY, the token of Babylon Genesis.
- Only ~0.8% of the bitcoin supply is currently utilized in DeFi, indicating significant untapped potential.
- Kraken's Global Head of Consumer noted that clients can earn returns on BTC while supporting PoS blockchains.
- The staking mechanism is fully on-chain with safeguards against malicious behavior.
- Users can unstake at any time, with an approximate 7-day unbonding period.
Kraken first offered custodial staking in 2019, and this feature is now available across all its platforms.