Kraken Introduces Bitcoin Staking Feature via Babylon Collaboration
Kraken, a leading cryptocurrency exchange, has unveiled a Bitcoin staking service in collaboration with Babylon Labs. This service allows users to earn rewards on their Bitcoin holdings by staking them directly on the platform, eliminating the need for bridging, wrapping, or lending. Staked Bitcoin is secured in a vault on the Bitcoin blockchain and delegated to support proof-of-stake (PoS) networks through Babylon’s protocol.
How Bitcoin Staking Works on Kraken
Users can begin staking Bitcoin immediately without transferring assets to external wallets. The process locks Bitcoin in a vault on the Bitcoin blockchain, delegating it to secure PoS networks via Babylon’s protocol. Rewards are paid in Babylon’s BABY tokens, which rose 5% in value after the announcement.
Benefits of Bitcoin Staking with Kraken
- Generates returns on idle Bitcoin assets
- Enhances security for emerging PoS blockchains
- Streamlines staking by removing complex processes
Market Response
According to CoinMarketCap, BABY tokens gained nearly 5% following the announcement, reflecting positive market sentiment toward Kraken’s new service.
Expert Perspective
“This service unlocks value from dormant Bitcoin while strengthening the broader crypto ecosystem,” said Mark Greenberg, Kraken’s global head of consumer. The integration marks significant progress in Bitcoin utility and PoS network growth.
