The crypto exchange Kraken has launched a Bitcoin non-custodial product that offers a yield of 2.5% annually. This product is an addition to its yield products, as investor demand for cryptocurrency rewards continues to grow.
Kraken unveiled Veda is a cryptocurrency yield infrastructure provider that has been supporting the launch of the product since Wednesday. said The offer seeks to eliminate “the headaches that come with wrapping Bitcoin, moving assets, or managing a crypto wallet.”
Kraken’s offering Bitcoin blockchains, such as Ethereum or Solana, do not allow users to create yield.
“Many Bitcoin holders on Kraken have made it clear they want simple ways to earn on the Bitcoin they already plan to hold,” Kraken Earn product director John Zettler said In a statement.
Source: Kraken
Veda was launched approximately 10 hours later. said The Bitcoin yield product has now received $30 million in Bitcoins from 4,00 wallets.
Kraken’s three stablecoin The yield products it introduced in January generated around $245 millions in deposits from customers and over $2.2million in yields since the launch on 26th Jan.
Related: Coinbase, Apex Group tokenize Bitcoin Yield Fund on Base
Kraken’s product creates yields from Bitcoin through the swapping of it into Kraken Wrapped Bitcoin, a token that replicates Bitcoin’s value. Crypto platform Sentora allocates these tokens to various crypto lending platforms, such as Aave Morpho, and Tydro.
Only depositors are allowed to withdraw or move their money. It is expected that the withdrawals take about five working days. Service providers also charge a 25 percent performance fee for rewards.
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Source: cointelegraph.com
