The exchange now offers Bitcoin holders up to 2.5% annual yield on BTC deposits through on-chain lending strategies.
Kraken introduced Bitcoin Vaults, allowing users to earn up to 2.5% APY on BTC holdings. Rewards accrue automatically in Bitcoin and are inclusive of a 25% performance fee deducted by yield providers.
The product leverages DeFi infrastructure from firms like Veda and Sentora, executing lending and borrowing strategies via protocols such as Aave and Morpho. Withdrawals require a five-day processing period.
Kraken stated the offering targets long-term Bitcoin holders seeking passive income without active trading. The exchange emphasized ease of access and trust as key features of the new service.