Crypto exchange Kraken has launched native Bitcoin (BTC) staking through a new integration with Babylon, a protocol enabling BTC to secure Proof-of-Stake (PoS) networks, without bridges, wrappers, or lending.
Starting today, Kraken users can stake their Bitcoin directly on the native chain, locking it in a BTC vault while delegating its economic weight to validate transactions on PoS networks. In return, stakers earn rewards in BABY, the native token of Babylon Genesis, a new PoS Layer 1 secured by BTC.
The Institutional Angle:
- For crypto-native prop traders and funds, this unlocks yield on idle BTC without compromising security or moving assets off-chain.
- Babylon’s trust-minimized model uses Bitcoin script-based governance and on-chain reward logic, keeping all staking activity transparent and auditable.
- Traders can unstake anytime with a ~7-day unbonding window, offering flexibility while maintaining decentralization.
“Clients can now earn a return on their BTC while enabling emerging PoS blockchains to benefit from the economic weight of Bitcoin,” said Kraken’s Global Head of Consumer, Mark Greenberg.
This launch positions Kraken and Bitcoin at the frontier of staking innovation, aligning BTC’s security ethos with the needs of next-gen DeFi and institutional crypto systems.
BTC staking is now live across all Kraken platforms, including Kraken Pro.
