Kraken has introduced Bitcoin Vault, a new product within its Kraken Earn suite that allows customers to earn BTC-denominated rewards on their Bitcoin holdings without selling the asset. The offering targets long-term holders who want passive yield tied to Bitcoin’s price exposure rather than a fiat-denominated return.
The product carries a variable rate of up to 2.5% APY, paid in Bitcoin. Under the hood, customer assets are routed through DeFi infrastructure built by Veda, with strategy design and risk curation handled by Sentora.
Those firms allocate capital across established onchain lending protocols including Aave, Morpho, and Tydro — platforms that have processed billions in DeFi volume. The exchange does not control these third-party protocols, and the company disclosed that users face technological, market, and operational risks, including the possibility of losing some or all assets.
The launch reflects a broader shift in how crypto exchanges compete for customers. Bitcoin ownership has long been characterized by a buy-and-hold mentality, but exchanges are now racing to offer yield products that give holders a reason to keep assets on-platform rather than in cold storage.
Kraken’s foray into onchain products follows a period of product expansion ahead of an initial public offering the company is targeting for later in 2026.
