Kraken Launches Bitcoin Vault to Expand BTC Yield Offerings

Bitcoin uses proof of work and cannot generate native staking yield like ETH. Holders seeking returns typically must assume risks involving lending, wrapped assets and smart contracts. Kraken has therefore integrated DeFi strategies into Kraken Earn. Its USDC Vaults, launched in January 2026, have attracted more than $240 million in assets, laying the groundwork for an expansion into BTC.

Kraken launched Bitcoin Vault on May 27, 2026, with infrastructure provided by Veda and the strategy designed and managed by Sentora. The product converts BTC into kBTC and allocates it across on-chain lending markets including Aave, Morpho and Tydro. It offers a variable annual yield of up to 2.5%, paid in BTC, with no minimum deposit. It is currently unavailable in the United Kingdom, the United Arab Emirates and Australia.