Українська
Русский
English
Kraken Launches Bitcoin Vault Yield Product for Long-Term BTC Holders
Crypto exchange Kraken has launched a new Bitcoin yield product, offering users annual returns of up to 2.5% on long-term $BTC without the need to interact directly with DeFi protocols. The product, called Bitcoin Vault, operates through Kraken Earn and allows clients to maintain spot exposure to Bitcoin while earning yield in $BTC generated through on-chain lending and liquidity strategies.
The launch expands Kraken’s existing DeFi Earn platform, which already routes client assets into decentralized lending markets through managed vaults. According to the exchange, the Bitcoin Vault product automates the deployment of Bitcoin into carefully selected DeFi strategies, eliminating the need for users to bridge assets, interact with external wallets, or manually move funds between protocols.
Kraken noted that the vault was created to simplify access to decentralized yield opportunities, while rewards are directly tied to Bitcoin rather than stablecoins or governance tokens. The exchange said the strategies used in the product rely on audited DeFi infrastructure and are managed through automated allocation systems.
Bitcoin Vault Uses a Wrapped Bitcoin Structure
Kraken’s product generates yield by converting deposited Bitcoin into Kraken Wrapped Bitcoin (kBTC), a token designed to reflect Bitcoin’s market value on-chain. The wrapped asset is then allocated by crypto platform Sentora across lending and liquidity platforms, including Aave, Morpho, and Tydro.
The company said the vault remains non-custodial, meaning users retain control over withdrawals and transfers connected to their deposits. However, withdrawals are estimated to take up to 5 days to process. Service providers involved in the strategy also charge a 25% performance fee on generated rewards.
John Zettler, head of Kraken Earn Products and CEO of Payward Services, said the exchange developed the product in response to demand from Bitcoin holders looking for simpler ways to earn yield on assets they intend to hold for the long term.
Deposits Exceeded $30 Million After Launch
Market interest in the product increased after launch. About 10 hours after Bitcoin Vault became available, crypto infrastructure platform Veda reported that the vault had surpassed $30 million in Bitcoin deposits from around 4000 unique wallets.
The launch also followed earlier growth in Kraken’s yield-focused products. The exchange said its three stablecoin yield vaults, introduced in January, had accumulated approximately $245 million in client deposits and generated more than $2.2 million in yield since January 26.
See also: "Kraken Launches Company-Funded Trading Program with Capital of up to $200,000"
