Crypto Exchange Kraken Partners with Babylon to Launch Bitcoin Staking

Crypto exchange giant Kraken announced Thursday the launch of Bitcoin staking in partnership with Babylon, a Bitcoin staking protocol. The development comes as Core Foundation collaborated with institutional lending protocol Maple Finance to improve BTC staking.

The announcement revealed that through the latest integration, Kraken offers its clients the ability to generate passive income from their Bitcoin holdings without resorting to bridging, wrapping, or lending solutions.

“Beginning today, Kraken clients can choose to stake their Bitcoin directly from Kraken through an integration with the Babylon Bitcoin staking protocol. The BTC is locked in a vault on the native Bitcoin chain and delegated to secure Proof-of-Stake networks via the Babylon protocol. Staked Bitcoin rewards are paid in BABY, the native token for Babylon Genesis, the first L1 network to be supercharged by Bitcoin,” the report said. 

Kraken Expands Staking Suite with Bitcoin Offering

The launch marks a significant milestone in Kraken’s expansion of its staking services. This reinforces its reputation as a leader in crypto product development. The BTC staking product is available across all of the exchange’s interfaces. This includes Kraken and Kraken Pro. 

Notably, the launch also enables clients to generate yield on their BTC while contributing to the security and transaction processing capabilities of emerging Proof-of-Stake blockchains. It also benefits from bitcoin’s economic influence.

Commenting on the move, Head of Business Development at Babylon Labs, Clayton Menzel, said:

“By anchoring staked BTC on the native chain and delegating it to PoS networks, Kraken clients can finally earn rewards without bridges or wrappers, helping preserve Bitcoin’s unmatched security and sovereignty. This launch channels Bitcoin’s economic gravity into securing the next wave of PoS ecosystems and marks a major step toward a truly BTC-native DeFi landscape.”

Kraken and Babylon Offer Secure, Trustless Bitcoin Staking

Additionally, Menzel stated that Kraken’s partnership with Babylon demonstrates that bitcoin staking can be done securely without requiring third parties. According to the announcement, staked BTC remains securely on the Bitcoin blockchain. The entire staking mechanism is enforced by bitcoin scripts, with rewards executed through Babylon Genesis’ on-chain logic—fully transparent and verifiable by anyone. 

On-chain logic refers to the fact that all data and processes are recorded on the blockchain’s permanent and public ledger. The transparency allows third parties to verify transactions, while the immutability of the blockchain ensures that once recorded. As millions of users participate in earning rewards, Kraken was one of the first crypto platforms to launch custodial staking in 2019. It is also one of the major crypto exchanges globally.

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