Kraken has introduced Bitcoin Vault is a product that Kraken Earn offers to its customers. It allows them to receive rewards in BTC for their Bitcoins, without having the need of selling it. The product is designed for long-term Bitcoin holders that want a yield which is tied to Bitcoin price volatility rather than fiat returns.
It has an APY of 2.5% and is payable in Bitcoin. Sentora is responsible for strategy design, while Veda builds the DeFi infrastructure.
Those firms allocate capital across established onchain lending protocols including Aave, Morpho, and Tydro — platforms that have processed billions in DeFi volume. These third-party protocol are not under the control of the exchange. The company has disclosed users may face technical, operational, and market risks including losing all or some assets.
This launch is part of a larger shift in the way crypto exchanges are competing for clients. Exchanges now offer products with yields that encourage holders to hold their assets rather than storing them in cold storage.
Kraken’s The company’s foray in onchain follows an expansion phase that preceded its planned IPO for the second half of 2026.
Kraken’s Bitcoin Vault details
Kraken used its own data in order to support the product. Its USDC Vaults offering, launched in January 2026, crossed $240 million in assets without the use of incentive programs — a benchmark the company cited as evidence of organic demand for structured yield products. Bitcoin Vault was designed to mimic that model, and is aimed at BTC owners. This segment represents the majority of customers.
“Many Bitcoin holders on Kraken have made it clear they want simple ways to earn on the Bitcoin they already plan to hold,” said John Zettler, Director of Product, Kraken Earn & Trade. “Bitcoin Vault is built for that mindset.”
Kraken’s mobile and web apps, as well as the Krak App, provide access to the product. The product is available across all Kraken’s operating jurisdictions, except for the United Kingdom and Australia.
It takes seconds to set up a DeFi account from an existing one. This is done in order to remove friction and make it easier for people who are new at using the technology.
Bitcoin Vault, a non-regulated product, is provided by Payward Wallet, LLC, a Kraken affiliate.
The product puts the exchange at the intersection of centralized exchange convenience and decentralized finance yield — a space where competitors including Coinbase and Binance have also been building, as crypto platforms work to broaden revenue streams beyond trading fees.
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Source: bitcoinmagazine.com
