Kraken Just Made Bitcoin Staking Real Without Wrapping or Lending
In a major move for BTC holders, Kraken has officially launched a BTC staking feature in partnership with Babylon Labs. For the first time, users can earn rewards on their BTC without having to wrap it, lend it, or move it off the original blockchain. The announcement, made Thursday, signals a new era of yield options for BTC holders.
Native Staking, No Chains Attached
What sets this apart? Bitcoin stays where it belongs—on the Bitcoin blockchain. Kraken places users’ BTC in a secure vault via Babylon’s protocol. That Bitcoin then contributes to securing proof-of-stake (PoS) networks through Babylon’s cryptographic system. All of it happens natively, using Bitcoin scripts, not third-party chains or bridges.
Users start earning in BABY, Babylon’s native token—not BTC. At the time of the announcement, BABY jumped nearly 5% before dipping, currently sitting at $0.04889.
According to Kraken’s Global Head of Consumer, Mark Greenberg, “A substantial amount of Bitcoin currently sits idle on our exchange. It represents a significant opportunity cost.” He added that this solution empowers users to get more value from their BTC while strengthening the wider crypto ecosystem.
Staked BTC can be withdrawn anytime, with a standard 7-day cooldown before it becomes accessible again.
Quick Take: Kraken’s new integration brings native BTC staking to the mainstream—no wrapping, no lending, just straight-up staking from the BTC chain. It’s a win for passive BTC holders, for PoS networks, and for the Babylon protocol powering it all.
YOU MIGHT ALSO LIKE: 4 Sharp Solana Price Analysis Triggers Ready to Fire This Week
