Kraken and Babylon Labs Launch Native Bitcoin Staking
Cryptocurrency exchange Kraken and Babylon Labs have partnered to offer native Bitcoin staking via Babylon’s protocol, enabling users to lock BTC in Kraken’s custodial vault and delegate it to proof-of-stake networks without wrapping or bridging. Since Babylon’s April 2025 mainnet launch, over 57,000 BTC (approximately $5.6 billion) has been staked. Participants earn rewards in BABY tokens, paid weekly, at yields up to 1% APR, with a seven-day unbonding period, transparent reward tracking and cryptographic penalties for malicious actors. Mark Greenberg, Kraken’s global head of consumer, noted that this service unlocks idle BTC yield while enhancing security and validation capacity for PoS networks. This marks Kraken’s first native BTC staking offering, broadening access to on-chain yield and deepening Bitcoin’s integration with emerging PoS ecosystems.
Bullish
Native Bitcoin staking typically increases on-chain demand for BTC by locking coins, reducing short-term supply and offering holders yield without counterparty risk. The announcement of Kraken’s service—backed by Babylon’s proven protocol, transparent rewards, cryptographic penalties and a track record of 57,000 BTC staked—reinforces investor confidence and is likely to drive further BTC accumulation. Weekly BABY token payouts at up to 1% APR add appeal for yield-seeking traders. In the short term, the news may prompt increased staking inflows, tightening circulating supply. Over the long term, broader adoption of native BTC staking can strengthen Bitcoin’s utility, support higher price floors and encourage integration with PoS ecosystems, sustaining a bullish outlook.