Kraken has launched a new Bitcoin staking product by integrating with the Babylon Bitcoin staking protocol. This move allows users to earn rewards on their BTC without using bridges, wrappers, or lending services. Clients can now lock their Bitcoin on its native chain and delegate it to secure Proof of Stake networks using Babylon.
This service is provided by Kraken through a secure custodial setup. Your BTC will remain on the Bitcoin blockchain while you get staking rewards in BABY tokens of Babylon Genesis. This launch complements products at Kraken and unlocks for clients another way to make idle Bitcoin productive.
Kraken was at the forefront of developing this integration to help users better participate in the extensive crypto-ecosystem. The exchange observed that there are many users who own Bitcoin for various purposes, yet they do not use it as a return-generating asset. With the development, users may support PoS networks as well as hold custody positions.
Transparent staking with On-chain logic
This instills economic power in PoS chains and allows users to earn money without endangering the security of their Bitcoin. Users can at any time pull out their BTC to stake. Nevertheless, they will have to wait for about seven days before they release their funds that were bound up earlier.
The delay serves partly to secure the network and partly to give flex time to users. It is very clear that staking rewards are not hidden in any way, so this one is just handled by the on-chain logic. Everybody can check transactions, as well as hosting records, which makes it possible to rely on the system even more. The integration employs cryptographic instruments to avoid abuse or fraud.
By Bitcoin scripts, the entire process is regulated. Babylon Labs has developed the system to be trustless and self-custodial, so you do not need to entrust your assets with any third party. This product runs on all Kraken interfaces, including Kraken as well as Kraken Pro.
Kraken strengthens crypto service offering
It serves to reinforce Kraken’s leadership in crypto services. The platform first launched staking in 2019, and from that time, the growth of its options has been experienced. This partnership between Kraken and Babylon Labs demonstrates, alongside other things, how Bitcoin can impact the wider decentralized finance space development.
Combining Bitcoin to the PoS networks opens up a whole new world of opportunities for users and blockchain projects. The great thing about it is that now you can switch your BTCs into staking mode.
This offers Bitcoin holders a way to earn and support the crypto world in a simple way that does not even imply a security downgrade. With this launch, it is clear how cryptocurrency innovations develop further, opening up new opportunities for the value of even already established digital assets.
