Kraken has introduced a Bitcoin staking service through a new partnership with Babylon Labs, enabling users to earn rewards in BABY tokens. The initiative allows Kraken customers to stake their Bitcoin without the complexities of bridging, wrapping, or lending their assets. Instead, users' Bitcoin will be locked on the blockchain and delegated to secure proof-of-stake networks via the Babylon protocol. Unlike typical staking rewards, the returns will be in BABY tokens rather than Bitcoin itself, and the value of BABY has reportedly risen by nearly 5% since the announcement. Mark Greenberg, Kraken’s global head of consumer, emphasized that a significant amount of Bitcoin on the exchange remains idle, which represents an opportunity cost. With this integration, clients can now earn returns on their Bitcoin while also contributing to the security of emerging PoS blockchains by utilizing the economic power of Bitcoin.

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