Exchange Kraken now offers Bitcoin Staking with Babylon

By Hannah Pérez

Kraken users can now generate yields from their bitcoin through the Babylon protocol. Bitcoin Staking without wrappers, intermediaries, bridges or loans.

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• If you have Bitcoin sitting in Kraken, you can now take advantage of it.
• Kraken launches Staking Bitcoin product in alliance with the Babylon protocol.
• Babylon is an alternative to bet BTC without bridges, loans, wraps or intermediaries.
• Bitcoin redefines your papal thanks to the evolution defi.

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Cryptocurrency exchange Krakenknown for being among the main ones in the world in terms of commercial volume, has presented a new product: Staking of Bitcoin (BTC).

In an announcement published on social networks on Thursday, Kraken announced that it has been associated with the protocol Babylonbased on Bitcointo allow users of the Exchange gain interests in your holdings of Bitcoin Without the need to bridge, wrap or lend.

“The BTC Staking is already here: driven by Babylon, now in Kraken“, The company wrote in X.

BTC Staking Is Here – Powered by Babylon, Now On Kraken.

✔️ Up to 1% Apr – Paid in $ Baby
✔️ No Bridging, wraping or lending required
✔️ Unlimited Staking
✔️ Weekly Payouts

Put your bitcoin to work ⬇️https: //t.co/ouqlgtkc8g pic.twitter.com/usctmq9vzh

– Kraken Exchange (@krakenfx) June 19, 2025

Babylon: an option to take advantage of Bitcoin

Bitcoin is not originally designed to Staking. In traditional staking, users block their cryptocurrencies in a participation test network (POS) –as Ethereum, Solana either Cardano– to validate transactions and obtain rewards.

It is not possible to do Staking of Bitcoin in the traditional sense, since Bitcoin It operates with a mechanism for proof of work (POW) and is based on mining, a process that requires computational power to validate transactions and generate new blocks. POS -based networks do the same through validators that block tokens.

However, as the cryptocurrency ecosystem has expanded and technology progresses, alternative methods have emerged that allow the headlines of Bitcoin obtain passive yields similar to Staking.

One option is that users “wrap” their Bitcoin (versions of Bitcoin In other block chains) or the “bridge” moving it to other networks to be able to use it in decentralized finance protocols (DEFI), with loan and performance services.

Among the existing alternatives stands out Babylonan innovative layer 1 based on the Blockchain of Bitcoindesigned to allow BTC native staking without the need for intermediaries, bridges or tokens wrapped as WBTC.

Bitcoin redefines his role with Defi, Staking

The integration between Kraken and Babylon will allow users of the centralized exchange to bet on Bitcoin directly, without interacting with wallets outside the exchange. Bitcoins are blocked in a vault of custody in the native block chain and delegates to the POS networks through the protocol Babylon. The reward is paid in Baby, the native token of Babylon.

Users can get out of staking at any time, with about a 7 -day unlock period.

“With this launch, customers can get a return from their BTC while allowing emerging positive block chains to benefit from Bitcoin’s economic weight To validate transactions and reinforce the safety of their networks“, Said Mark Greenberg, global director of consumption of Kraken.

The new product also gives more traditional users of Kraken, that protect your Bitcoin Within the platform, take advantage of their coins while accessing a changing defi ecosystem.

“A substantial amount of Bitcoin is currently inactive in our Exchange”Said Greenberg, ensuring that these inactive assets represent “A significant opportunity cost for customers and a lost opportunity for the broader ecosystem“

This development reflects evolution in recent times of Bitcoinwhich has historically been seen primarily as a reserve of value and a means of exchange, to redefine its role in Defi and Web3.

Centralized exchanges such as Binance and Bybit They offer ‘EARN’ performance products for Bitcoinsimilar to Stakingbut where the platform borrows the assets in exchange for profits for the client. In the case of Babylonthe platform also transforms the BTC into a productive asset with yields, but maintaining user custody.

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Hannah Estefanía Pérez / Diariobitcoin

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