The cryptocurrency exchange Kraken has launched staking for the first cryptocurrency in collaboration with the BTCFi project Babylon.

The integration will allow clients to earn rewards without using bridges or 'wrapped' assets.

Users delegate their coins through Babylon to secure Proof-of-Stake (PoS) networks. Rewards are issued in the native token of the protocol — BABY.

According to the statement, clients will retain full control over their coins, which do not leave the Bitcoin blockchain. The process is managed by a smart contract, and the protocol includes cryptographic mechanisms to protect against malicious actors.

Assets can be withdrawn from staking at any time. The unblocking period for funds is seven days.

Kraken's head of consumer department, Mark Greenberg, noted that a significant amount of bitcoins on the exchange remain inactive.

"Now clients can earn income on their BTC, while new PoS blockchains can leverage the economic weight of Bitcoin to confirm transactions and enhance the security of their networks," he added.