Kraken Launches Bitcoin Vault: Earn Up to 2.5% APY on BTC Holdings via DeFi
Kraken is rolling out a new Bitcoin Vault product, letting users earn BTC-denominated yield directly on their holdings. This move taps into DeFi infrastructure to offer passive income, aiming to keep assets on-platform.
Kraken just dropped Bitcoin Vault, a new way to juice your BTC without selling. This isn't your typical fiat yield; you're earning Bitcoin on Bitcoin, with rates up to 2.5% APY. They're routing your assets through established DeFi protocols like Aave and Morpho, so expect variable rates and the inherent risks that come with on-chain plays. Kraken isn't touching the DeFi side directly, so know that your capital is exposed to market and operational risks, including potential loss.
This is a clear play to lock down long-term holders. Exchanges are fighting for every sats, and offering passive income on assets people already plan to HODL is the new battlefield. Kraken saw success with their USDC Vaults and is now replicating that model for their biggest user base: Bitcoin holders.
The setup is designed to be frictionless, accessible across all Kraken platforms, and available in most jurisdictions except the UK, UAE, and Australia. It’s Kraken bridging the gap between CEX convenience and DeFi yield, a space where competitors are also aggressively expanding.