Kraken Bitcoin staking goes live with Babylon integration, letting users earn BABY tokens natively, no wrapping, bridging, or lending.
Author: Akshat Thakur
Kraken has introduced native Bitcoin staking through Babylon, letting users earn BABY tokens without bridging, wrapping, or lending.
Crypto exchange Kraken has rolled out a new staking product that allows users to stake Bitcoin natively. This move comes through an integration with Babylon Labs, marking the first time Kraken Bitcoin staking enables users to earn rewards without using bridges or wrapped tokens.
Starting today, Kraken customers can stake Bitcoin directly from their accounts. The Bitcoin remains secured on its native blockchain using a vault system. Delegation occurs through Babylon’s protocol to secure proof-of-stake (PoS) blockchains.
Rather than rewards in BTC, users receive Babylon’s BABY token. Following the announcement, the BABY token saw a 5% price increase, highlighting growing interest in Kraken Bitcoin staking.
Mark Greenberg, Kraken’s global head of consumer, emphasized that a large portion of idle Bitcoin on the exchange could now be put to use. The protocol allows users to support emerging PoS chains while retaining Bitcoin’s security.
The new product also reflects a broader trend in BTCFi, a segment of DeFi built on Bitcoin infrastructure. Kraken Bitcoin staking joins the wave of innovations aiming to bring more utility to BTC without compromising its decentralization or custody.
Babylon’s protocol uses time-locked scripts and inflationary rewards to deliver staking incentives. BABY tokens serve multiple roles: paying for transaction fees and granting governance rights.
Projects like Rootstock, Stacks, and Liquid are all contributing to Bitcoin’s evolution beyond digital gold. According to Binance research, the total value locked in BTCFi platforms has surged by 2,700% in the past year.
The launch of Kraken Bitcoin staking marks a step forward in making Bitcoin compatible with modern staking economies. By allowing BTC to secure other blockchains, Kraken and Babylon help unlock new revenue streams while supporting network growth.
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