Kraken Enables Bitcoin Staking via Babylon

• Kraken adds Bitcoin staking through Babylon integration.
• Users lock BTC on-chain and earn BABY tokens without wrapping.
• 7‑day unbonding, rewards paid weekly in BABY.

Kraken has introduced on‑chain Bitcoin staking by integrating with Babylon, a Bitcoin-native staking protocol. For the first time on Kraken, users can stake BTC directly in a custodial vault governed by Bitcoin scripts—no bridging, wrapping, or lending involved.

How It Works

Once staked, your BTC stays secured on the Bitcoin blockchain and is delegated to Proof‑of‑Stake networks via Babylon, enabling BTC to secure other ecosystems while remaining in your control. Rewards come in BABY, Babylon’s native token. Kraken estimates annual rates between 0.5–1% APR, paid weekly.

Benefits & User Experience

• Maintain BTC security: Your Bitcoin never leaves the blockchain; staking is managed with self‑custodial, time‑locked outputs.
• Earn while supporting PoS networks: As Kraken’s Head of Asset Growth noted, idle BTC represents lost opportunity—now it can earn returns while strengthening emerging PoS ecosystems.
• Flexible access: Clients can unstake at any moment, with tokens becoming available after a ~7‑day unbonding period.

What Users Should Know

• This product is available in eligible regions, including the UAE.
• No transaction fees—Kraken takes a commission (10–26%) from rewards.
• Potential risks include variable rewards, slashing, hacks, or market volatility—standard staking risks apply.

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