Kraken Unveils New Bitcoin Staking Product
Kraken, a prominent cryptocurrency exchange, has unveiled a new product that allows users to stake Bitcoin, thanks to a collaboration with Babylon Labs.
Integration with Babylon’s Staking Protocol
In a recent announcement made on Thursday, the exchange revealed its integration with Babylon’s staking protocol, enabling users to generate interest from their Bitcoin holdings without the complexities of bridging, wrapping, or lending their assets.
Starting immediately, Kraken customers can stake their Bitcoin directly through the platform, without the need to interact with external wallets. In this process, the Bitcoin is secured in a vault on the blockchain and delegated to support proof-of-stake (PoS) networks facilitated by Babylon.
Rewards and Market Response
Unlike traditional staking rewards, users will be compensated in Babylon’s BABY token. Following this news, the value of BABY has seen a rise of nearly 5%, according to data from CoinMarketCap.
Opportunity for Bitcoin Users
Mark Greenberg, who serves as the global head of consumer at Kraken, noted that a considerable amount of Bitcoin remains inactive on the exchange, which he describes as a “significant opportunity cost” for customers, as well as a lost chance for the wider cryptocurrency ecosystem.
With this new initiative through Babylon, Greenberg emphasized that users can now earn returns on their Bitcoin while also contributing to the advancement of emerging PoS blockchains, which can utilize Bitcoin’s economic weight for transaction validation and enhanced network security.
