Kraken has introduced Bitcoin staking through Babylon integration, marking the exchange’s first offering that allows clients to earn yield on their BTC holdings without moving them off the Bitcoin blockchain.
The announcement, published in a June 19 blog post, positions Kraken alongside a growing wave of institutions leveraging Babylon’s staking infrastructure. Kraken customers can now use Babylon’s protocol to assign their Bitcoin (BTC) to proof-of-stake blockchains while still keeping complete ownership of their assets.
Kraken’s strategy avoids the trade-offs associated with traditional staking solutions, which often require wrapping or bridging Bitcoin to other networks. The underlying Bitcoin is never lent out or rehypothecated. Instead, it stays on the Bitcoin blockchain.
Through Babylon’s smart contract-based delegation mechanism, staked assets help to secure PoS networks. In return, users receive rewards in BABY, Babylon’s native token. The service features a seven-day unbonding period, transparent reward tracking, and cryptographic penalties for bad actors.
Kraken’s global head of consumer, Mark Greenberg, described the launch as an opportunity to put idle BTC to productive use. “A substantial amount of Bitcoin currently sits idle on our exchange,” he said. “Clients can now earn a return while strengthening the infrastructure of emerging PoS blockchains.”
Kraken joins other platforms like Binance and BitGo that have embraced Babylon’s infrastructure to offer native Bitcoin yield opportunities. Over 57,000 BTC, worth over $5.6 billion, have already been staked on Babylon’s Genesis mainnet since it launched in April 2025, demonstrating growing institutional interest in Bitcoin-native decentralized finance protocols.
Until now, less than 1% of Bitcoin’s total supply is involved in DeFi, primarily due to the technical complexity and security risks of bridging BTC to other chains. By enabling trustless delegation from Bitcoin to PoS networks, Babylon’s approach reduces those frictions while extending BTC’s utility in the broader crypto ecosystem.
Kraken’s new staking service is now live across all interfaces, including Kraken Pro. Staking yields up to 1% APR, with weekly BABY rewards, though rates may vary. The company noted that staking involves risk and is subject to regional restrictions. BABY token prices climbed nearly 5% decentralized finance Kraken’s announcement but has since cooled.
