Cryptocurrency exchange Kraken has integrated with the Babylon Bitcoin staking protocol, enabling its clients to earn passive rewards on their Bitcoin (BTC) without the need for bridging, wrapping, or lending the asset.
Beginning today, Kraken clients can stake their Bitcoin directly through this new integration. The BTC is locked in a vault on the native Bitcoin chain and then delegated to secure various Proof of Stake (PoS) networks via the Babylon protocol. Staking rewards are paid in BABY, the native token for Babylon Genesis, which is presented as the first Layer 1 network utilizing Bitcoin’s security.
Mark Greenberg, Global Head of Consumer at Kraken, stated that a significant amount of Bitcoin currently held on the exchange represents an opportunity cost for clients and the broader ecosystem. He noted that this launch allows clients to earn a return on their BTC while enabling emerging PoS blockchains to leverage Bitcoin’s economic weight for transaction validation and network security.
Clayton Menzel, Head of Business Development at Babylon Labs, commented that Kraken’s integration demonstrates the scalability of trust-minimized Bitcoin staking. He highlighted that by anchoring staked BTC on the native chain and delegating it to PoS networks, Kraken clients can earn rewards without external bridges or wrappers, thereby preserving Bitcoin’s security and sovereignty. Menzel added that this initiative directs Bitcoin’s economic influence into securing future PoS ecosystems and marks a step towards a BTC-native decentralized finance (DeFi) landscape.
The staked BTC remains on the Bitcoin blockchain, with the staking mechanism governed by Bitcoin scripts. Staking rewards are managed by on-chain logic on Babylon Genesis, ensuring public verifiability. The protocol incorporates cryptographic safeguards designed to prevent and penalize malicious behavior. Clients can unstake their BTC at any time, subject to an approximate 7-day unbonding period before funds become available for withdrawal.
This launch expands Kraken’s staking offerings. Kraken was among the first exchanges to introduce custodial staking in 2019, providing millions of users with access to earning rewards through its Earn platform. The BTC staking product is now available across all Kraken platform interfaces, including Kraken and Kraken Pro.
Kraken is a technology platform focused on crypto that provides access to digital and traditional assets for individuals, professional traders, and institutions globally. Babylon Labs specializes in Bitcoin security-sharing protocols, including its trustless and self-custodial Bitcoin staking protocol, which aims to combine Bitcoin’s security with the efficiency of PoS systems.
