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Cryptocurrency exchange Kraken has introduced a groundbreaking Bitcoin staking service through integration with Babylon's blockchain protocol, enabling BTC holders to earn yields without transferring assets off the platform.
As of June 19, 2025, Kraken users can participate in Bitcoin staking directly through their exchange accounts. The service utilizes Babylon's time-lock technology to secure Proof-of-Stake networks while keeping BTC on the Bitcoin blockchain. Unlike traditional staking mechanisms, this approach eliminates the need for wrapping tokens or using intermediary bridges.
【Notable Detail】Participants receive rewards in Babylon's native BABY token rather than Bitcoin. Market data shows BABY's price surged 5% following the announcement, currently trading at $3.42 according to CoinMarketCap.
Mark Greenberg, Kraken's Global Head of Consumer, emphasized that "over 【60%】 of Bitcoin on our platform currently generates zero yield." The integration aims to transform dormant BTC into productive assets while enhancing security for emerging PoS chains.
——This represents a paradigm shift in Bitcoin utility beyond store-of-value narratives—— noted Greenberg during the product launch.
The process involves three key steps: 1. Users allocate BTC to Babylon's smart contracts 2. Assets remain in Bitcoin-native vaults 3. Staked BTC helps validate transactions on partner PoS networks
Rewards derive from an 8% annual inflation pool, split equally between BTC stakers and BABY token holders. Early adopters can expect yields ranging from 【4-6%】 APY based on network participation rates.
This development marks the latest advancement in Bitcoin financialization (BTCFi), joining projects like Rootstock and Lightning Network. Recent data shows Bitcoin-based DeFi TVL has grown 【2,700%】 year-over-year, signaling strong demand for yield-bearing Bitcoin products.
Industry analysts suggest the Kraken-Babylon partnership could accelerate institutional adoption by providing regulated access to Bitcoin staking. The exchange plans to expand support for additional PoS networks throughout Q3 2025.
【Pro Tip】Users should note the 14-day unstaking period and potential BABY token volatility when considering participation. Kraken confirms all staked Bitcoin remains custodied on its insured platform throughout the process.