The cryptocurrency exchange Kraken has launched staking for the leading cryptocurrency in collaboration with the BTCFi project Babylon.
This integration allows clients to earn rewards without the use of bridges or “wrapped” assets.
Users delegate their coins through Babylon to secure networks based on Proof-of-Stake (PoS). Rewards are paid in the protocol’s native token — BABY.
According to the statement, clients retain full control over their coins, which remain on the Bitcoin blockchain. The process is managed by a smart contract, and the protocol includes cryptographic mechanisms to protect against malicious actors.
Assets can be withdrawn from staking at any time. The unlocking period for funds is seven days.
Mark Greenberg, head of Kraken’s consumer division, noted that a significant amount of Bitcoin on the exchange remains inactive.
“Now clients can earn income from their BTC, while new PoS blockchains can use the economic weight of Bitcoin to confirm transactions and enhance the security of their networks,” he added.
Kraken described the launch as an expansion of its staking product line. The new service is already available on all of the exchange’s platforms, including Kraken and Kraken Pro.
Babylon is a leading BTCFi project by total value locked. The TVL in the protocol has reached $4.9 billion, according to DeFi Llama.
Back in April, the Babylon team launched the main L1 network Genesis and conducted a BABY airdrop.