Kraken Expands Bitcoin Staking Capability Through Babylon Integration
Kraken has announced a new service that enables users to stake their bitcoin directly, keeping it secured in a custodial vault on the native blockchain.
Key Points:
- Launch Date: The staking feature is now accessible for users.
- Integration: This new option collaborates with Babylon, a protocol that allows bitcoin to help secure proof-of-stake networks.
This innovation comes at a time when decentralized finance for BTC is gaining traction. By allowing direct staking, Kraken users can delegate their bitcoin to PoS networks while earning rewards in BABY, the token of Babylon Genesis, as stated by the exchange.
Historically, BTC has served as a method of value preservation and transaction facilitation. Recent advancements in security protocols facilitate this third operational use of bitcoin in DeFi.
According to Binance Research in a report, only about 0.8% of the bitcoin supply is utilized within DeFi, highlighting substantial potential for growth. Binance, a competitor, also provides a similar staking option via Babylon.
With this development, Kraken’s clients can gain returns on their BTC while supporting PoS blockchain transactions and enhancing network security.
Users retain the flexibility to unstake at any moment, subjected to a 7-day unbonding period. This represents a significant evolution of Kraken’s offerings since it first introduced custodial staking in 2019.
For further details, visit CoinDesk.
