The Crypto Exchange Kraken has launched a new bitcoin staking product through a protocol integration with Babylon labs.
On a Thursday announcementKraken said it has partnered with Bitcoin (Btc) Staking Protocol Babylon. Integration allows exchange users to earn interest in their Bitcoin handles without the need for bridging, wrapping or lending.
Kraken customers can use the service from now on by staking their Bitcoin without contacting off-exchange wallets. Bitcoin is locked in a vault on the Bitcoin blockchain and is sent to secure proof-of-stake (POS) networks through the Babylon protocol.
Rewards are not paid to Bitcoin; Users earn Babylon’s baby token. The baby’s price increased by almost 5% from the announcement, according to CoinMarketCap.
Related: Babylon Total Value The Locked Drops 32% while Wallets Unke $ 1.2B in Bitcoin
Bitcoin staking in search for utility
Mark Greenberg, global consumer leader in Kraken, said “a large amount of Bitcoin is currently sitting in our exchange.” According to him, this idle asset represents “a significant opportunity for clients and a missed opportunity for a broader ecosystem.”
By combining Babylon, Greenberg said clients can now earn their Bitcoin. He also featured how it has the added benefit of “enabling emerging POS blockchains to benefit from the weight of the Bitcoin economy to prove transactions and strengthen the security of their networks.”
BTCFI sees a Renaissance
BTCFI described financial projects developed on top of Bitcoin. One of the first such development was arguably the Omni Layer, which was launched on July 31, 2013, and once the only way to move Tether’s USDT (USDT) Stablecoin, before Ethereum is created.
However, BTCFI often refers to recent projects, such as Babylon. Babylon is a network with a Bitcoin secure network that allows Bitcoin BTC holders native, without wrapping or bridging, to secure POS blockchains while maintaining control over their properties.
Staking occurs through scripts locked on time and without the need for mediators. Rewards come from an 8% annual inflation, with 4% allocated to BTC stakers and 4% to baby stakers. The baby can spend on transaction fees and gives holders to vote for protocol changes.
Other examples of BTCFI include layer-2 blockchains developed in bitcoin stacks, Ethereum virtual machine-compatible Bitcoin sidechain rootstock and the liquid network, as well as the scalability solution network paired with a tokenization layer, taproot assets.
Early May Reports indicate that Smart Contract Platform Rootstock Saw a sharp increase in network security and Mining Interaction in the first quarter of 2025. Research released in April by leading the Crypto Exchange Binance showed that the amount locked in Bitcoin-based in decentralized finances has Surged more than 2,700% In the past year.
Brendon Sedo, Core Dao Initial Contributor, Argued in March That bitcoin exceeds the “digital gold” narrative thanks to the BTCFI’s increase.
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