Kraken has launched Bitcoin Vault, a new feature within its Kraken Earn product that allows long-term holders to earn up to 2.5% in BTC-denominated rewards on their bitcoin.
What is Bitcoin Vault?
The product is powered by Veda, with strategy design and risk curation handled by Sentora.
Their platforms allocate vault assets across well-known onchain protocols including Aave, Morpho, and Tydro
The goal is to make earning on bitcoin more accessible without requiring users to navigate complex DeFi interfaces directly.
John Zettler, Director of Product at Kraken Earn & Trade, said:
“Many Bitcoin holders on Kraken have made it clear they want simple ways to earn on the Bitcoin they already plan to hold. Bitcoin Vault is built for that mindset. It gives customers a way to earn rewards on their Bitcoin through an experience that is easy to access and grounded in the trust Kraken has built over time.”
Demand and context
Kraken pointed to early traction in its USDC Vaults product, which surpassed $240 million in assets since launching in January through organic, zero-incentive growth, as evidence of demand for simpler earning products.
Bitcoin Vault is designed to serve both existing Kraken customers and bitcoin holders outside the platform looking to consolidate holdings.
Risks to understand
Kraken is clear that rewards are variable and not guaranteed, and users can lose some or all of their assets.
Interacting with onchain smart contracts carries risks including bugs, exploits, oracle failures, MEV, and bridge failures.
Market risks such as price volatility, de-pegs, and liquidation also apply, as do operational risks like irreversible transactions and network congestion.
Kraken does not control the third-party protocols used by the vault.
Availability
Bitcoin Vault is now live via Kraken web, Kraken Pro web, the Kraken app, and the Krak app.
It is available everywhere Kraken operates except the UK, UAE, and Australia.
