Kraken has launched Bitcoin Vault, a brand new product inside its Kraken Earn suite that enables prospects to earn BTC-denominated rewards on their Bitcoin holdings with out promoting the asset. The providing targets long-term holders who need passive yield tied to Bitcoin’s worth publicity slightly than a fiat-denominated return.
The product carries a variable charge of as much as 2.5% APY, paid in Bitcoin. Below the hood, buyer belongings are routed via DeFi infrastructure constructed by Veda, with technique design and threat curation dealt with by Sentora.
These corporations allocate capital throughout established onchain lending protocols together with Aave, Morpho, and Tydro — platforms which have processed billions in DeFi quantity. The change doesn’t management these third-party protocols, and the corporate disclosed that customers face technological, market, and operational dangers, together with the potential for shedding some or all belongings.
The launch displays a broader shift in how crypto exchanges compete for patrons. Bitcoin possession has lengthy been characterised by a buy-and-hold mentality, however exchanges at the moment are racing to supply yield merchandise that give holders a cause to maintain belongings on-platform slightly than in chilly storage.
Kraken’s foray into onchain merchandise follows a interval of product enlargement forward of an preliminary public providing the corporate is focusing on for later in 2026.
Kraken’s Bitcoin Vault particulars
Kraken drew by itself knowledge to justify the product. Its USDC Vaults providing, launched in January 2026, crossed $240 million in belongings with out the usage of incentive applications — a benchmark the corporate cited as proof of natural demand for structured yield merchandise. Bitcoin Vault is designed to copy that mannequin for BTC holders, a phase that represents the biggest share of the shopper base.
“Many Bitcoin holders on Kraken have made it clear they need easy methods to earn on the Bitcoin they already plan to carry,” stated John Zettler, Director of Product, Kraken Earn & Commerce. “Bitcoin Vault is constructed for that mindset.”
The product is accessible via Kraken’s internet interface, its Professional platform, the cellular app, and the Krak app. It’s out there in all Kraken working jurisdictions besides the UK, the United Arab Emirates, and Australia.
Setup requires seconds from inside an present account, a design alternative aimed toward eradicating friction for customers with out DeFi expertise.
Bitcoin Vault is assessed as an unregulated product supplied by Payward Pockets, LLC, a subsidiary of Kraken.
The product places the change on the intersection of centralized change comfort and decentralized finance yield — an area the place opponents together with Coinbase and Binance have additionally been constructing, as crypto platforms work to broaden income streams past buying and selling charges.