Kraken Shatters Norms with Game-Changing Native Bitcoin Staking via Babylon Protocol

Wall Street's worst nightmare just got sharper teeth. Kraken—the exchange that never met a regulatory boundary it didn't want to vault over—just flipped Bitcoin's script with native staking through Babylon Protocol.

No more 'lazy Bitcoin' jokes

Forget everything you knew about idle BTC gathering dust in cold storage. Babylon's cryptographic voodoo now lets Kraken users earn yield on the original crypto—no wrapped tokens, no synthetic derivatives. Just pure, uncut Bitcoin working for its keep like the rest of us.

The fine print they won't highlight

Early access is limited to whales (naturally), with minimum staking thresholds that'd make a credit Suisse private banker blush. But here's the kicker—it's all happening while the SEC still debates whether Bitcoin is a security, commodity, or Elon Musk's next tweet subject.

One cynical closer: Nothing unites crypto bros and trad-fi suits like the smell of yield—even if it means pretending decentralized protocols have 'risk departments.'

TLDR

• Kraken launches native Bitcoin staking with Babylon and no wrapping required
• Earn BABY token rewards by staking Bitcoin directly on the blockchain with Kraken.
• Kraken activates secure Bitcoin staking while keeping assets fully on chain.
• Put idle Bitcoin to work with Kraken’s new staking product powered by Babylon.
• Kraken introduces transparent Bitcoin staking that supports emerging PoS networks.

Kraken has launched a new Bitcoin staking product by integrating Babylon’s native staking protocol. The product allows Kraken clients to stake their Bitcoin directly on the Bitcoin blockchain. This launch eliminates the need for bridging, wrapping, or third-party lending systems.

BTC Staking is here — powered by Babylon, now on Kraken.

✔️ Up to 1% APR – paid in $BABY
✔️ No bridging, wrapping or lending required
✔️ Unlimited staking
✔️ Weekly payouts

Put your bitcoin to work ⬇️https://t.co/OUqlgTKc8G pic.twitter.com/usctmQ9vzH

— Kraken Exchange (@krakenfx) June 19, 2025

Clients can stake their BTC without moving it off the Bitcoin network, increasing usability while maintaining security. The staking process involves locking Bitcoin in a vault and delegating it to secure PoS networks. Babylon handles delegation while ensuring Bitcoin remains on-chain.

Kraken confirmed that the staked Bitcoin does not exit the native chain, ensuring full transparency and self-custody. Babylon’s on-chain scripts manage staking and validate activity through public smart contracts. This process also uses cryptographic security to penalize malicious behavior.

Staking Rewards Paid in BABY Token as Babylon Network Supports the Process

Kraken users who stake their Bitcoin receive rewards in BABY, the native token of the Babylon Genesis network. The staking mechanism supports a roughly seven-day unbinding period before users can withdraw staked BTC. According to CoinMarketCap data, BABY tokens increased nearly 5% following the announcement.

The reward mechanism operates fully on-chain and remains verifiable by users and third parties. Babylon Genesis, the first PoS network secured by native BTC, powers this reward distribution. Kraken leverages this integration to enable decentralized reward flows.

The use of BABY tokens allows clients to benefit from staking without losing Bitcoin’s underlying position. Kraken continues to support token utility by expanding access to products tied to active chain participation. As the reward system scales, PoS chains may further benefit from the BTC weight delegated through Kraken.

Kraken Expands Its Staking Suite With Secure Bitcoin Integration

Kraken introduced custodial staking in 2019 and extend its offerings with native Bitcoin staking. This addition builds on Kraken’s goal to support broader blockchain participation without compromising asset control. It reflects Kraken’s continued push to offer trusted and scalable staking options.

The integration unlocks a large volume of dormant BTC held on Kraken’s platform for productive use. By connecting with Babylon, Kraken brings Bitcoin into the staking economy with minimal user-side complexity. Users can access the product through both Kraken and Kraken Pro interfaces.

Kraken stated that this service helps strengthen emerging PoS networks by securing them with Bitcoin’s economic base. As a result, blockchains can gain extra security while users earn passive rewards on idle assets. Kraken confirms the product is now live and ready for use across supported platforms.