Arincen - In a first-of-its-kind announcement, the global trading platform 'Kraken' announced the launch of an innovative staking service that allows its users to earn returns on Bitcoin (BTC) without the need to transfer assets from the original blockchain network.
The new service came through integration with the Babylon protocol and represents a significant shift in the way Bitcoin is used within the decentralized finance (DeFi) ecosystem, allowing users to delegate their tokens to proof-of-stake (PoS) chains while retaining full ownership, without the need for complex solutions like 'wrapping' assets or 'bridging' between networks.
Under this mechanism, users receive weekly rewards in BABY, which is the native currency of the Babylon protocol, while their Bitcoin assets remain secured on the original network. The service features a 7-day unbonding period, a transparent rewards system, and encrypted penalty mechanisms for violators.
Mark Greenberg, global head of consumer sector at Kraken, stated:
A large percentage of Bitcoin on our platform is idle, and today we are giving users the opportunity to generate income from it, while supporting the infrastructure of new blockchain chains.
Kraken has joined other platforms such as Binance and BitGo in adopting the Babylon infrastructure. According to data, over 57,000 Bitcoins – equivalent to $5.6 billion – have been staked on the Babylon network since its launch in April 2025, highlighting the increasing institutional interest in integrating Bitcoin into the DeFi system without the need for centralized or risky solutions.