The cryptocurrency exchange Kraken has integrated with the Babylon protocol, allowing its users to stake Bitcoin. From now on, platform clients can place their BTC in staking directly through the exchange and receive rewards in BABY tokens.
This is reported by Бізнес • Медіа
Features of Bitcoin Staking on Kraken
As stated in the company’s official announcement, users retain full control over their assets. Withdrawals of locked funds can be made at any time, but the process may take up to seven days.
Clients’ Bitcoins never leave the exchange’s network. Management is conducted through a smart contract, and modern cryptographic security mechanisms have been implemented for safety.
Availability of Staking and Future Prospects
At the initial stage, the new feature is available only in selected jurisdictions: the USA (excluding certain states), the United Kingdom, Australia, and the United Arab Emirates. It is currently unknown whether the service will be scaled to other markets.
“A significant amount of Bitcoin is currently sitting idle on our exchange, representing a substantial opportunity cost for clients and a lost opportunity for the broader ecosystem. With this launch, clients can now earn income from their Bitcoins while enabling new PoS blockchains to benefit from the economic weight of the asset for transaction validation and strengthening the security of their networks,” said Kraken Global Consumer Mark Greenberg.
Kraken co-director Arjun Mehta also emphasized that implementing solutions like Babylon enhances the value and utility of the entire cryptocurrency ecosystem.
Recall that the Babylon project officially launched its mainnet in August 2024, marking an important step for the development of the Bitcoin staking market.