Crypto exchange Kraken introduced a new Bitcoin staking feature by collaborating with Babylon Labs. This way, users can earn rewards on their Bitcoin without moving their coins off the Bitcoin blockchain. Wrapping, lending, or other network usage isn't required.
BTC remains locked on the native Bitcoin chain and assists in securing proof-of-stake (PoS) networks. Users do not need to transfer their coins to an external wallet. Kraken stores the Bitcoin in a vault, and it remains on the Bitcoin chain throughout the process. The service is already available on all of Kraken platforms.
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Rather than receiving rewards in Bitcoin, the users will be rewarded with BABY, the Babylon protocol's native cryptocurrency. Currently, at the time of writing, BABY is worth $0.04889, a 2% increase in the last 24 hours. The token went up almost 5% immediately after the announcement but fell slightly later.
Kraken consumer head Mark Greenberg stated that much of the Bitcoin just remains dormant on the exchange. With this new feature, users earn from their Bitcoin and contribute to making PoS networks more secure. Users also get to unstake at any time, with a seven-day delay before they receive their Bitcoin back.