Simply put
- The company based in San Francisco has announced that Bitcoin holders can earn rewards through Kraken.
- Investors can achieve this using Babylonian staking protocols.
- Rewards will be distributed in the form of Babylon’s Native Baby Token.
Users on Kraken can stake their Bitcoin, according to an announcement made in a blog post.
The San Francisco-based exchange noted that customers can lock their BTC on the platform and earn rewards in baby tokens, thanks to Babylon, a Bitcoin protocol.
“There’s a lot of Bitcoin sitting idle on our platform, which really is a missed opportunity for our clients and the broader ecosystem,” remarked Mark Greenberg, the global head of consumer. “This rollout gives clients a chance to earn BTC returns while also helping new POS blockchains leverage Bitcoin’s value to validate transactions and boost network security.”
The Babylon BTC staking feature will be available only in the US (with the exception of California, Maine, Maryland, New York, Washington, and Wisconsin), as well as in the UK, Australia, and the UAE.
Last year, it was reported that Crypto Startup Babylon was gathering funds to enable Bitcoin investors to stake their assets, with the Baby Token as the project’s native currency.
Staking involves a process where users can commit coins or tokens to a network, which then functions in exchange for potential rewards.
Holders of POS assets like Ethereum or Solana send their tokens to a specific blockchain address and contribute to the network. They usually receive compensation as long as their assets remain locked.
While Bitcoin is not a POS coin and instead operates on a Proof of Work consensus, Babylon’s technology allows Kraken users to use BTC as collateral for a secure network of proofs.
In recent months, Kraken has been benefiting from favorable conditions after the Securities and Exchange Commission narrowed enforcement actions against other crypto companies like ConsenSys and Cumberland DRW LLC.
In April, Kraken took a step forward by launching stock and exchange-traded fund trading in a few states and the District of Columbia, integrating traditional financial products into its existing offerings.
As for Bitcoin’s recent trading activity, it remained relatively stable around $104,300 as the US observed its June holiday.
