Kraken unveils Bitcoin Vault, expanding yield push for BTC holders The new earn product lets users generate BTC-denominated rewards through DeFi strategies while keeping exposure to bitcoin’s price.
What to know: – Kraken launched Bitcoin Vault, a new product within Kraken Earn aimed at long-term bitcoin holders seeking passive yield. – The product is powered by Veda and operated by Sentora, with funds deployed across DeFi protocols including Aave and Morpho. – The crypto platform’s broader DeFi Earn offering has grown to more than $240 million in assets since launching in January
Crypto platform Kraken is offering customers an easier way to earn yield on their bitcoin The Bitcoin Vault product within Kraken Earn allows users to win rewards denominated in bitcoin while maintaining exposure to BTC’s price. It is aimed at long-term holders looking for passive income opportunities tied to assets they already plan to keep over time, Kraken said in the Wednesday press release. The new offering is powered by DeFi infrastructure provider Veda and operated by Sentora, with customer assets allocated across established onchain lending and yield protocols including Aave, Morpho and Tydro. “Many bitcoin holders on Kraken have made it clear they want simple, safe ways to earn on the bitcoin they already plan to hold,” John Zettler, GM of Payward Services and head of Kraken Earn Products, said in the statement. “Bitcoin Vault is built for that mindset,” he added.
The structure is intended to abstract away much of the operational complexity typically associated with DeFi participation, allowing customers to access yield opportunities directly through their Kraken accounts. In crypto, vaults are pooled investment products that automatically deploy users’ assets across DeFi protocols to generate yield. Rather than requiring users to manually move funds between lending, staking or liquidity platforms, they package those strategies into a single product, often with automated risk…