Kraken Integrates Babylon for Native Bitcoin Staking at 1% APY
Kraken has integrated Babylon’s non-custodial protocol to enable native Bitcoin staking directly on the Bitcoin blockchain, offering up to 1% APY in BABY tokens. Unlike wrapped or bridged solutions, staked BTC remains fully on-chain and never leaves user custody, preserving Bitcoin’s security and decentralization. This move builds on Babylon’s current $5.6 billion in staked BTC on mainnet and marks a new standard for centralized exchanges adding DeFi features. Traders gain a secure way to earn passive income on BTC holdings without counterparty risk, potentially boosting Bitcoin demand and reducing liquid supply.
Bullish
The introduction of native BTC staking on Kraken is bullish because it offers holders a secure way to earn yield while reducing liquid supply. Similar integrations—such as Ethereum restaking options—have historically driven positive price momentum by locking assets and increasing demand. Offering 1% APY in BABY tokens without custodial risk may attract new and existing investors, supporting both short-term trading activity and long-term Bitcoin accumulation.