According to CoinDesk, KRAKEN ANNOUNCED on June 19 that native Bitcoin staking was possible through BABYLON, thereby allowing those who hold BTC to earn yield without having to stop over on the Bitcoin blockchain.
While at the same time eliminating wrapping/bridging/lending and therefore ensuring full asset custody. Babylon allows for staking BTC to PoS networks while preserving on-chain provenance, the source said. User rewards are distributed in BABY tokens via Babylon’s smart contracts.
The Kraken launch represents a major shift in how Bitcoin can engage with staking protocols natively, providing a trustless, transparent way to generate yields. This feature is now live for all eligible users in supported jurisdictions on all Kraken interfaces, including Kraken Pro.
Why the Kraken Launch with Babylon Maintains Bitcoin Sovereignty
As per the Kraken official announcement and Babylon technical overview, the Kraken launch leverages smart contracts developed on Babylon’s Bitcoin-scripted delegation model, which in turn means BTC can be staked without ever leaving the Bitcoin blockchain.
This greatly lowers the risk of counterparty and smart contract risk since it keeps the assets the users have in their own custody. The rewards are provably fair and open, governed by an on-chain cryptographic governance mechanism.
Unstaking also takes 7 days, in line with the security model of Babylon. This architecture gives accountability and is compatible with institutional-grade decentralized DPOS on Bitcoin.
Strong Industry + Service Line Momentum for Kraken Launch and Babylon
Since we launched Babylon Genesis in April 2025, over 57,000 BTC ($5.6 billion at current prices) has been staked on Babylon, a testament to the confidence of institutional investors. With the launch of the Kraken, this opportunity is now available to retail users.
With less than 1% of the total BTC supply in DeFi as of now, the Kraken launch provides a way to increase utility for the digital asset without relinquishing control.
Responses from the Babylon Community
On Reddit, one user asked:
“How do you stake a non-stakable crypto?”
Another chimed in:
They’ve been dabbling with Bitcoin staking… [which] you maintain full ownership of your assets.
Regulatory & Operations Post-Kraken Launch
Babylon launch is now globally available at Kraken (excluding jurisdiction-specific restrictions), as indicated by Kraken’s official support page and Babylon’s regional availability directions.
Staking BABY Tokens: Staking is available in the US, UK, Australia, and the UAE. But it is restricted in some such jurisdictions, such as California, New York, and Wisconsin, because of regulatory limits.
However, some key risks exist, such as price volatility of tokens, slashing risk associated with validator fault, and compulsion from a seven-day unbonding period if you want to withdraw.
The Kraken Launch and Babylon’s Bottom Line
The launch of the Kraken product is a turning point; BTC is now able to yield directly, safely, and on-chain via Babylon. For BTC holders who want to earn on their holdings without ever relinquishing full custody, the Kraken launch, in tandem with Babylon, provides an attractive new option.
That isn’t to say that staking would come without risks. BABY prices might vary, there might be delays in unbonding, and regulatory changes could affect availability.
Risk management: Investors must evaluate their risk tolerance and how staking fits into a diversified crypto strategy, especially in the wake of the high-stakes Kraken launch and Babylon integration.
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FAQs
1. How does Kraken’s launch make it possible to stake BTC while not abandoning blockchain?
Kraken’s launch is implemented as a part of Babylon’s delegation system, enabling BTC to stay on-chain while gaining rewards, without dealing with wrapping, lending, or risks associated with third-party custody.
2. What are the benefits of staking the BTC on Kraken?
Stakers receive BABY tokens, the native asset of Babylon, which is distributed weekly for all to see and secured by on-chain cryptographic governance functions.
3. Is there any risk in staking Bitcoin through the Kraken launch?
Yes. Risks include volatility of the BABY token, slashing penalties for validators, and a fixed seven-day unbonding period for withdrawals.
4. Can I stake the Babylon Road Kraken anywhere?
No. It is available in countries including the US and the UK, but access is limited in some jurisdictions, like California, New York, and Wisconsin.
Glossary of Key Terms
1. Kraken Launch
The term describes Kraken’s official launch of native Bitcoin staking, powered by the Babylon protocol, in which BTC can be held and rewards can be earned without having to move the coins off-chain.
2. Babylon
Babylon is a staking infrastructure protocol that allows users to delegate BTC onto proof-of-stake networks in a trustless way, wrapped or transferred tokens on the Bitcoin network itself.
3. Bitcoin Staking
A process in which Bitcoin is sent to maintain PoS networks through delegated participation, as it is done through Babylon’s integration with Kraken, without extracting BTC from its chain.
4. BABY Token
BABY is the in-house reward token for Babylon. Kraken BTC stakers earn BABY as rewards for securing dPoS networks.
5. Proof-of-Stake (PoS) Chains
A mechanism in which validators are chosen to produce new blocks and validate transactions according to the amount of tokens they have and are willing to “stake.”
6. Smart Contracts
Decentralized, autonomous code that operates on blockchain networks, as employed in the Kraken-Babylon system to establish transparent, automatic delegation and reward distribution for BTC staking.
7. Unbonding Period
A mandatory waiting period following the initiation of a staking withdrawal. In the Babylon protocol on Kraken, this duration is 7 days.
8. On-Chain Governance
A decentralized form of decision-making literally written into blockchain code. On-chain governance on Babylon guarantees validator accountability and transparent rewards in BTC staking.
